BlackRock Raises Alarm Over Potential Bitcoin Security Status in Latest ETF Filing
In its latest filing update for a spot bitcoin exchange-traded fund (ETF), BlackRock, the world’s largest asset manager, has raised concerns about the potential classification of bitcoin as a security by the U.S. Securities and Exchange Commission (SEC), state regulators, or court rulings.
The asset manager cautioned that such a determination could have an immediate adverse impact on bitcoin’s trading value and the shares of the spot bitcoin ETF. The filing highlighted the example of the SEC’s legal action against Ripple, noting the significant market capitalization drop for XRP following the regulatory complaint.
Commercial litigator Joe Carlasare noted the interesting addition in BlackRock’s filing, suggesting that the SEC might have insisted on this language. Former SEC internet enforcement chief John Reed Stark expressed skepticism about the likelihood of SEC approval for a bitcoin spot ETF, citing Chair Gensler’s stance on crypto tokens. Stark questioned whether Gensler would want his legacy to include approving a bitcoin spot ETF, considering his views on most crypto tokens being securities.
Clever Robot News Desk 8th December 2023
