October: A Pivotal Month for Crypto Industry with Key SEC Decisions

October: A Pivotal Month for Crypto Industry with Key SEC Decisions

The Upcoming SEC Decisions and their Impact on the Blockchain Industry

As October approaches, the crypto community eagerly awaits key decisions to be made by the US Securities and Exchange Commission (SEC) that could potentially impact the entire blockchain industry.

SEC Appeal Incoming?

One crucial decision the SEC is expected to make is whether or not to appeal the ruling in its case against asset manager Grayscale. The deadline for an appeal is October 13th, 45 days from the court’s ruling.

On August 29th, Grayscale achieved a landmark victory against the SEC when the District of Columbia Court of Appeals ruled that the regulator had failed to provide a valid reason for denying Grayscale’s application. The court ordered the SEC to review the application once again.

In response to the ruling, an SEC spokesperson stated that they would carefully review the decision before determining their next steps.

If the SEC chooses to appeal, it can do so at the US Supreme Court by filing a petition for a “writ of certiorari.” This document asks the Supreme Court to review the case. Alternatively, the SEC could request an “en banc” review, where all judges of the DC Court of Appeals would further examine the case.

An appeal by the SEC would undoubtedly dampen the mood in the crypto community as it could prolong the wait for a Spot Bitcoin ETF. However, if the Commission decides not to appeal, it will become law that the spot and futures markets are correlated. The argument that the spot market is more susceptible to fraud and manipulation will then no longer hold.

Pending ETF Applications

Another significant development to look out for in October is the second deadline for several pending spot Bitcoin ETF applications. The SEC must decide whether to approve, deny, or delay these applications. Notable dates include October 16th and 17th.

October 16th marks the second deadline for a decision on the Bitwise Bitcoin ETP Trust. On the other hand, October 17th is the second deadline for the SEC to decide on the iShares Bitcoin Fund, VanEck Bitcoin Trust, Wisdomtree Bitcoin Trust, Invesco Galaxy Bitcoin ETF, and Wise Origin Bitcoin Trust.

It is widely expected that the SEC will choose to delay its decision on these applications, pushing the next deadline for a decision to the following year.

If the SEC continues to stretch out its decision-making process, the earliest final responses can be expected on January 10, 2024—the ultimate deadline for the ARK 21Shares Bitcoin ETF.

Despite the potential delays, there is still room for optimism in October. The SEC is expected to allow the launch of pending Ethereum futures ETF applications. Volatility Shares, for instance, is projected to launch theirs on October 12th, with others following suit.

The cryptocurrency market currently boasts a market cap of $1.03 trillion, reflecting its substantial growth and popularity among investors.

Overall, the decisions to be made by the SEC in October hold great significance for the blockchain industry. These determinations will not only impact the future of cryptocurrency regulation but also shape the direction of innovation and development within the blockchain space.

Pending ETF Application Deadlines
ETF Application Deadline
Bitwise Bitcoin ETP October 16, 2021
iShares Bitcoin Fund October 17, 2021
VanEck Bitcoin Trust October 17, 2021
Wisdomtree Bitcoin Trust October 17, 2021
Invesco Galaxy Bitcoin ETF October 17, 2021
Wise Origin Bitcoin Trust October 17, 2021
ARK 21Shares Bitcoin ETF January 10, 2024

In conclusion, the outcome of the SEC decisions will shape the landscape of the blockchain industry. As stakeholders and enthusiasts await these crucial determinations, the industry continues to grow and thrive, reflecting the immense potential and excitement surrounding blockchain technology.

*[ETF]: Exchange-Traded Fund