The US Securities and Exchange Commission (SEC) looks to evaluate plans which would make it easier to bring new exchange-traded funds (ETFs) to market.
Typically, an ETF needs specific permission from the SEC which usually includes a long wait and a large amount of money before formally approved. These proposals will effectively streamline what has been dubbed by the SEC itself as “unnecessary regulatory burdens”.
Most notably, these proposed rules will apply to both existing ETFs and all future ETF launches. SEC chairman Jay Clayton stated that the changes will “level the playing field”.
So what does this mean for blockchain based enterprises? Effectively this could mean that blockchain based ETFs become more prevalent and open the doors to investors wanting to back blockchain based companies in a more regulated and less risky way.
The caveat placed by Clayton was that not all ETFs would be equal and that “exotic ETFs” would not be eligible. This could, of course, include blockchain based ventures.
Currently, multiple Bitcoin-ETFs are under review and are stuck in a state of limbo until the SEC can be assured as to who the crypto markets work in relation to valuation and regulation.
Some believe the occurrence of a bitcoin approved ETF is the catalyst market needs to rise from the recent ongoing slump it seems to be in.
Such sentiment was relayed by Arthur Hayes CEO and Co-founder of BitMEX who believes that bitcoin is “is just one positive regulatory decision away from climbing through $20,000 on its way to $50,000 by the end of the year” in an interview with CB+NBCs fast money Hayes added that he believes that regulatory decision will be in the form of a Bitcoin ETF approved by the SEC.