Don’t Get Too Excited, but the SEC Approved Bitcoin ETPs | Morrison Foerster

Equally important is the question of whether the approval of spot bitcoin ETPs is a harbinger of opportunities for other crypto assets that least resemble securities—for example, could an ETP holding spot or ETH futures be next?—or whether the SEC will try to hold the line here. Chairman Gensler noted that the SEC is “merit neutral” and doesn’t take a view on particular assets underlying an ETP, but he also cautioned that this very narrow approval should not be seen as willingness to approve listing standards for other crypto asset securities. It seems likely that the SEC will continue to be challenged in this by market participants that believe their products comply with the requirements of the federal securities laws and that wish to participate in the regulated market. How the SEC handles these opportunities will dictate whether the SEC under Gensler facilitates capital formation through a more robust trading market regulated by the SEC or allows the current market uncertainty to persist.

Source: Don’t Get Too Excited, but the SEC Approved Bitcoin ETPs | Morrison Foerster