Eric Palcionas and James Seifart, analysts for exchange traded funds (EFT) at Bloomberg, said the proposed rule change with the US Securities and Exchange Commission (SEC) could be an incentive for the regulator to approve a Bitcoin ETF in mid-May. 2023

In a tweet Thursday, Balciunas said that crypto platforms could fall under the SEC’s regulations if the committee approves a change to change the definition of “exchange” proposed in January. The rule change will change the Stock Exchange Act to include platforms that “make all types of securities available for trading” – potentially including cryptocurrencies – making their investment instruments more attractive to the regulator.

Analysts said: “When cryptocurrencies comply, the main reason the SEC will refuse to reject Bitcoin spot ETFs will cease to be valid, potentially paving the way for their approval.

Balciunas and Seiffart said that under this revised definition of an “exchange”, which can be completed between November 2022 and May 2023, the Securities and Exchange Commission can approve crypto-ETFs, including those linked to Bitcoin (BTC). The regulator has so far rejected all rule changes to allow exchange traded funds (BTCs) to be listed on stock exchanges, despite the fact that some investment instruments related to bitcoin futures were approved in 2021.

Related: Bitcoin price mimics Bull Run in 2017?

Several lawmakers and industry leaders in the United States have spoken out against the Securities and Exchange Commission’s reluctance to approve the Bitcoin spot ETF. In November, representatives Tom Emmer and Darren Soto sent a letter to Securities and Exchange Commission Chairman Gary Gensler challenging the regulator’s reasons for not listing the Bitcoin ETF. Bitfury CEO and former auditor Brian Brooks said during a hearing in December that the United States was “undoubtedly behind” in approving a crypto-ETF.

Source: CoinTelegraph

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