A Looming Pause for Crypto ETF Proposals
SEC Delays Decisions on Proposed Dogecoin and Hedera Hashgraph Exchange-Traded Funds
In a recent development, the U.S. Securities and Exchange Commission (SEC) has pushed back the review timelines for a slew of crypto Exchange-Traded Fund (ETF) applications. This decision includes popular tokens such as Dogecoin, Hedera, Solana, Cardano, Ethereum staking, and Avalanche.
The new deadlines, extended into July 2025 and beyond, were announced for several applications like Bitwise's Dogecoin ETF, Grayscale's Hedera Trust, Canary Capital's HBAR ETF, and four Solana ETF proposals from Bitwise, 21Shares, VanEck, and Canary Capital [1][3][4].
The SEC's Cautious Approach
The SEC's slow and careful approach stems from the need to ensure these crypto-based ETFs comply with regulations to prevent fraudulent and manipulative practices and protect investors, as required under Section 6(b)(5) of the Securities Exchange Act [1]. The agency is also inviting more public feedback on proposed rule changes.
Despite not reaching any final conclusions, the SEC continues to evaluate unresolved legal and policy issues, as the volume of applications and overlapping review timelines from major firms complicate the assessment process [1].
Delays, Feedback, and Competition
These delays will postpone the market entry of these ETFs, with some analysts predicting the earliest possible launches in early Q4 2025 rather than mid-2025 [5]. By seeking further public comments, the SEC is fostering a transparent regulatory process, allowing stakeholders to shape the final rules and listing standards for crypto ETFs.
However, these delays could potentially impact competition among applicants, such as the impact of a “first-to-file, first-to-approve” approach on the launch chances of early filers like Canary Capital’s HBAR ETF [2].
The Quest for Clarity in Regulations
The repeated delays underscore the ongoing regulatory uncertainty surrounding altcoin and spot crypto ETFs, which may affect investor sentiment and product innovation timelines [4]. It's a pivotal period for crypto ETFs, as the SEC continues to scrutinize these applications thoroughly, maintaining a degree of regulatory ambiguity.
In conclusion, the SEC's decision to extend review periods for multiple crypto ETF applications signals its dedication to ensuring comprehensive regulatory oversight and investor protection amid complex legal and policy challenges. Meanwhile, these delays present opportunities for public feedback, promote regulatory transparency, and sustain a period of regulatory uncertainty [1][2][4][5].
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P.S.The U.S. SEC has initiated formal proceedings on June 11 for the Bitwise Dogecoin ETF and on June 12 for the Grayscale Hedera Trust, extending deadlines while requesting additional public comments. These proceedings are proceeding under NYSE Arca Rule 8.201-E for the Bitwise Dogecoin ETF and Nasdaq Rule 5711(d) for Grayscale's proposed Hedera ETF and Canary's HBAR ETF [4].
- The SEC's decision to extend review periods for crypto ETF applications involving Bitcoin, Ethereum staking, Hedera, Solana, Cardano, Avalanche, and Dogecoin underscores the ongoing regulatory uncertainty in the crypto finance world.
- The dynamic landscape of crypto investing is influenced by the SEC's approach to crypto Exchange-Traded Funds (ETFs), as they evaluate unresolved legal and policy issues, including those related to Ethereum and other altcoins.
- As the SEC seeks further public feedback on proposed rule changes for crypto ETFs involving crypto assets like Eth, crypto staking, and ICO-backed coins, the question of technology's role in shaping finance regulations remains a pertinent one.
- The competition among crypto ETF applicants, such as Bitwise, Grayscale, VanEck, 21Shares, and Canary Capital, may be impacted by these delays, particularly for early filers like Canary Capital’s HBAR ETF, as they navigate the complex process of crypto staking and compliance.
