SEC Delays Decision on Ethereum ETF Options
The U.S. Securities and Exchange Commission has extended a decision to weigh options linked to spot Ethereum exchange-traded funds beyond the initial given date of November 11. The move, once approved, will provide permission for NYSE American to list options on several Ethereum-centric funds such as Bitwise Ethereum ETF and Grayscale Ethereum Trust among other funds holding Ethereum assets. It has sparked intense debate within the cryptocurrency community with respect to Ethereum options trading and their potential to unlock new investment opportunities for both institutional and retail investors alike.
SEC Allows Bitcoin ETF Options
This comes just months after the SEC greenlighted the allowance for 11 Bitcoin ETFs listed on NYSE American, Nasdaq, and Cboe Exchange to start option trading. This approval had marked growing receptivity by them to cryptocurrency options on regulated exchanges. With those approvals in place, the same exchanges have now petitioned to list Ethereum ETF options, seeking to extend their range of cryptocurrency offerings. Final approval does, however, require collaboration with other regulatory bodies, including the CFTC and OCC, each of which must greenlight the proposed options listings.
Trump Reelection May Spur Regulatory Shift
The November 5 reelection of Donald Trump to U.S. President has fired up hopes among crypto optimists who believe that the new administration is likely to introduce, overall, a friendlier regulatory regime. He was more about allowing growth in markets and innovations during his term in general, which may potentially transcend to digital assets. Trump’s second coming may also hasten the greenlighting process for cryptocurrency-based ETFs, as asset managers are currently filing applications for ETFs tracking cryptocurrencies such as Solana SOL, XRP, and Litecoin LTC, among others, as well as diversified crypto indices.
Possible Change of Batons at SEC
There is some speculation about who might lead the SEC under Trump. Crypto lawyer Jake Chervinsky suggested SEC Commissioner Mark Uyeda, a proponent of clearer crypto regulations who joined the commission in 2022, as a possible replacement for them Chair Gary Gensler, whom Trump has pledged to remove. Peirce’s interest in the chair position is less apparent, though she is a contender and picked up the nickname “Crypto Mom” due to her support.
Criticism of the SEC’s Crypto Regulatory Approach
There has been growing criticism of the approach taken by the SEC toward regulating cryptocurrency; instead of having a clear regulatory framework, it leans heavily on enforcement actions. Critics argue that this “regulation-by-enforcement” line is a lack of clarity that keeps uncertainty in the industry. Trump may have influenced the policy course of the SEC and helped bring clear, predictable guidelines regarding the up-and-coming crypto industry.
