SEC Approval Of Bitcoin ETF Deemed Essential By TD Cowen
TD Cowen’s research team predicts that the U.S. Securities and Exchange Commission (SEC) will approve a spot bitcoin exchange-traded fund (ETF) by the January 10 deadline, viewing it as a “political necessity.”
The market anticipates that this decision will showcase the SEC’s commitment to its role as a crypto regulator before broader legislative discussions on cryptocurrencies take place in Congress. The bank emphasizes the SEC’s desire to avoid legal challenges to its stance on bitcoin ETFs, particularly after its defeat in the legal battle against Grayscale Investments last August, which forced a reconsideration of its initial denial of the application.
Amid Congress’s consideration of various cryptocurrency-related bills, including those from the U.S. House Financial Services Committee passed last year, TD Cowen believes there is still an opportunity for lawmakers to negotiate a comprehensive crypto market structure bill during the potential “lame duck” period after an election. The bank underscores the need for the SEC to take a leading role in investor protections to garner support from the Senate and the White House for comprehensive crypto legislation during this critical legislative window.
Clever Robot News Desk 5th January 2024
Related Article
