SEC Can’t Treat Crypto Futures & Spot ETFs Differently: BlackRock

BlackRock has argued against the Securities and Exchange Commission (SEC) that it can not treat spot and future crypto ETF applications differently.

In its spot Ether ETF application filing, submitted by Nasdaq, BlackRock questioned the SEC’s view on spot crypto ETFs asserting that the agency is denying applications based on regulatory distinctions between spot and future crypto ETFs.

The argument from BlackRock arises as the agency has continued denying spot crypto ETFs for a number of applicants while allowing to have crypto future ETFs.

BlackRock’s spot Ether ETF application was recently filed to the SEC which was submitted by Nasdaq. 

SEC believes that crypto future ETFs fall under superior regulations under the 1940 Act which provide greater consumer protections, whereas spot crypto ETFs fall under the 1933 Act. 

BlackRock however opposes the relevance of the 1940 Act for crypto assets with it stating that it has certain restrictions on ETFs and ETF issuers while not on the underlying asset for the ETF.

While SEC’s approval to Chicago Mercantile Exchange (CME) for future crypto ETFs was dependent on belief of its regulation and surveillance-sharing agreements, BlackRock said that it has determined that the spot market fraud at CME could also affect the spot ETFs.

Read More

2023-11-11 10:44