Executives of U.S. investment firm BlackRock met with the SEC’s crypto task force on Friday to discuss various issues related to cryptocurrency spot exchange-traded products (ETPs). The discussion, along with the latest developments in the management of U.S. President Donald Trump, represents a growing U.S. interest in the cryptocurrency industry.
Blackrock and SEC talk about appearing in ETFs – Approval soon?
BlackRock representatives met with the agency’s crypto task force led by Commissioner Hester Pierce to “solve several issues related to crypto asset regulation,” according to a memo released Friday by the Securities and Exchange Commission. In particular, briefings between the two sides have involved situations that stand out among ETFs, which has become a major topic in recent months.
In particular, BlackRock attempts to discuss the committee’s perception of points and the potential to allow funds traded through the deposit of selected exchanges.
It is worth noting that the New York Stock Exchange (NYSE) proposed a proposed rule change in February that will introduce grayscale ETherefore, trust ETFs and Grayscale Ethereum Mini Trust ETFs. If the SEC approves this application, it will allow Grayscale to lock a portion of crypto assets in its ETF holdings to generate additional revenue for the trust.
In April, the SEC delayed its decision on the request. Bloomberg analyst James Seyffart has previously said that while the intermediate deadlines for May and August are intermediate deadlines, the committee has great potential to get approval until the final deadline in October. In addition to grayscale, the Chicago Trading Commission (CBOE) has also made similar requests for the 21shares core Ethereum ETF.
Tokenization, encryption ETP approval standards, others
In addition to appearing in ETFs, BlackRock and the SEC also talked about ways to advance securitization under the existing federal securities laws. It is worth noting that BlackRock offers Buidl tokens, a tokenized money market fund investing in high-quality government securities (such as fiscal bills).
In addition, the parties discussed the need to determine clear standards for Crypto ETP rejection or approval, which will also take into account the provisions of Section 6 of the Exchange Act to ensure that ETP transactions only occur on standardized exchanges. While drafting this framework, BlackRock also proposed the creation of a temporary regulatory system for ETP issuer activities.
The final conversation point between the two parties explores the requirements for setting locations and exercise restrictions on crypto ETP trading options, focusing on how liquidity of underlying assets affects these restrictions.
At the press conference, the cryptocurrency market was worth $3.22 trillion, after a 1.19% increase in the previous few days.
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