TD Cowen Predicts SEC Approval of Spot Bitcoin ETF: A Strategic Move to Avoid Litigation and Strengthen Regulatory Control
SEC Likely to Approve Spot Bitcoin ETF: Political and Legal Considerations
TD Cowen, an international investment bank, anticipates that the U.S. Securities and Exchange Commission (SEC) will approve the Spot Bitcoin ETF to prevent potential legal setbacks and solidify their stance on cryptocurrency regulation. This move is seen as a strategic decision to avoid a repeat of legal defeats like in the Grayscale case and to demonstrate the adequacy of existing regulations in overseeing the crypto market.
Further reading：Spot Bitcoin ETF: Uncertainties Loom as BlackRock Awaits SEC’s Green Light, FOX Analyst Predicts Approval Timeline
Key Factors Influencing SEC’s Decision
- Political Motives: To avoid the need for separate crypto-specific legislation by Congress, and to reinforce the SEC’s position as a competent crypto regulator.
- Avoiding Litigation Risks: TD Cowen suggests that refusal to approve could lead to lawsuits against the SEC, with potential risks of defeat in court.
- Grayscale Precedent: The SEC aims to prevent a recurrence of losses similar to the Grayscale lawsuit.
The Deadline for SEC’s Decision
The final decision on the Spot Bitcoin ETF applications, including those from ARK Investment and 21Shares, is due by January 10. This deadline also applies to other similar applications from major players like BlackRock and Fidelity.
Republican-Led Crypto Legislation Efforts
In addition to the Spot Bitcoin ETF focus, the past year has also seen significant efforts in crypto policy led by the Republican Party. Key legislative proposals include federal-level regulation of stablecoins and a comprehensive regulatory approach to the crypto market structure.
Further reading：SEC Set to Announce Bitcoin ETF Approval Verdict Within Days
Prospects for Crypto Market Structure Legislation
According to TD Cowen, there’s still a chance for the crypto market structure bill to pass during the “lame duck” period, with outgoing House Financial Services Committee Chairman Patrick McHenry aiming to finalize this before his term ends. If this bill does not succeed, McHenry’s backup plan may focus on stablecoin legislation.
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Keywords: TD Cowen, SEC, Spot Bitcoin ETF, Cryptocurrency Regulation, Litigation, Grayscale, ARK Investment, 21Shares, BlackRock, Fidelity, Crypto Legislation, Stablecoins, Market Structure, Political Motives, Legal Risks
