Opinion: The SEC is losing its war against tokens. A spot Bitcoin ETF could be close
Written by Mel Gelderman
Posted on September 7th, 2023
Mel Gelderman reflects on Grayscale’s recent win against the SEC, hinting that a spot Bitcoin ETF could be on the horizon.
There were celebrations all round in the token space last week after a judge ruled in Grayscale’s favour in its court battle with the SEC. The US regulator must now review its decision to reject Grayscale’s application for a spot Bitcoin ETF. This adds pressure on them to finally greenlight a fund tracking the top token. Just as importantly, it shows that the SEC is losing its battle against tokens.
“The SEC’s attack on tokens is losing steam.”
SEC faces embarrassment 🏛
The judge packed no punches against the SEC in the ruling, describing the rejection as “arbitrary, capricious, and discriminatory.” This is significant given that the SEC has repeatedly blocked a spot Bitcoin ETF. It’s also an embarrassing outcome for SEC Chair Gary Gensler, who’s famously been on the attack against tokens since he took office. It also bodes well for other cases like Coinbase’s fight with the regulator.
Gensler’s biggest argument is that tokens should be classified as securities. But he’s yet to offer any clear guidance on regulation. While the future can’t be foreseen, the SEC’s attack appears to be losing steam.
Awaiting a spot Bitcoin ETF ⏳
Alongside Grayscale, five other big traditional finance firms are awaiting responses on their own applications. One of them is BlackRock, the world’s largest asset manager with a 99% approval rate on ETFs. So you could say the SEC is under pressure.
“A spot Bitcoin ETF will ignite a new wave of interest in tokens.”
The space is waiting with bated breath, and experts expect an approval as soon as this year. Without putting a hard deadline on it, I tend to agree with them: a spot Bitcoin ETF is coming, and it’s going to ignite a new wave of interest in tokens when it does. Make sure you’re ready for it now.
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