Spot Bitcoin ETFs Approved in Landmark SEC Decision
After more than a decade of waiting, the crypto industry has finally achieved a significant milestone in the United States with the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The SEC approved applications from several prominent companies in the crypto space, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton. This historic decision paves the way for the introduction of Bitcoin ETFs, allowing investors easier access to the cryptocurrency market.
SEC Chair’s Approval Raises Questions About Crypto Intentions
The approval of spot cryptocurrency ETFs by the SEC, particularly under the leadership of Chair Gary Gensler, has raised questions about the SEC’s stance on cryptocurrencies. Gensler, who has often expressed concerns about the risks associated with crypto investments, was one of three commissioners who voted in favor of approving the offerings. Some community members speculated that Gensler’s vote was motivated by the potential influx of investor funds that the expansion of crypto products could bring. Others suggested that the approval was inevitable, considering the federal court’s mandate for the SEC to review Grayscale’s offering.
Critics Blast SEC Approval of Bitcoin ETFs as ‘Unsound’
While the approval of spot Bitcoin ETFs has been celebrated by the crypto industry, not everyone is happy with the SEC’s decision. SEC Commissioner Caroline Crenshaw, one of the two commissioners who voted against the approval, criticized the move as “unsound and ahistorical” in her statement. Nonprofit economic organization Better Markets also voiced strong criticism, describing the ETFs as inherently worthless and without purpose. Gold advocate and Bitcoin critic Peter Schiff joined the chorus of critics, dismissing the approvals as just providing more opportunities for speculators to gamble on Bitcoin.
Honduras Economic Zone Recognizes Bitcoin as Unit of Account
In a significant development, Próspera, a special economic zone in Honduras, has officially recognized Bitcoin as a unit of account. This recognition means that Bitcoin can now be used to measure the market value of goods and services within the zone. Initially, tax liabilities of Bitcoin-electing entities will be determined in reference to BTC for internal accounting purposes but reported to Próspera Zone for Employment and Economic Development (ZEDE) in United States dollars or the Honduras lempira. The goal is for entities to eventually report tax liabilities and make payments to Próspera ZEDE in BTC once the necessary issues are resolved.
Google Play Store Blocks Binance and OKX in India
In response to a noncompliance notice from the Indian government, Google’s Play Store in India has removed the Binance and OKX cryptocurrency exchange apps. This action follows a similar decision by Apple’s App Store in India in December 2023. The Indian Ministry of Finance’s Financial Intelligence Unit (FIU) had issued a notice to several exchanges, including Binance and OKX, for operating illegally in India. The notice required exchanges to register as “reporting entities” and submit statements to the income tax department. The FIU proposed blocking the websites of the exchanges for non-compliance.
Do Kwon Requests SEC Trial Postponement
Do Kwon, co-founder of Terraform Labs, has requested a postponement of his trial date in the United States District Court for the Southern District of New York. Kwon’s legal team cited extradition challenges in Montenegro as the reason for seeking the delay. The trial, scheduled for January 29, is related to fraud charges filed against Kwon by the SEC in February 2023. The charges accuse Kwon of being involved in a multibillion-dollar crypto securities fraud linked to the collapse of Terraform Labs’ stablecoin TerraUSD (USTC) and its associated token Terra (LUNA). Kwon’s legal team expressed his desire to attend the trial in person, but the current circumstances make it unfeasible for him to do so this month.
Analyst comment
1. Spot Bitcoin ETFs Approved in Landmark SEC Decision: Positive news. The approval of spot Bitcoin ETFs by the SEC will likely lead to increased investment and easier access to the cryptocurrency market. This could result in a surge in the price of Bitcoin and potentially other cryptocurrencies.
2. SEC Chair’s Approval Raises Questions About Crypto Intentions: Neutral news. While the approval of the ETFs is positive, the motives behind SEC Chair Gary Gensler’s approval raise questions about the regulator’s stance on cryptocurrencies. It remains to be seen how the SEC will continue to regulate the crypto industry in the future.
3. Critics Blast SEC Approval of Bitcoin ETFs as ‘Unsound’: Negative news. Despite the approval, there are critics who believe that these ETFs are worthless and serve no purpose. This criticism may create some doubt and hinder the potential success of the ETFs.
4. Honduras Economic Zone Recognizes Bitcoin as Unit of Account: Positive news. The recognition of Bitcoin as a unit of account in a special economic zone in Honduras is a significant development. This could encourage more adoption of Bitcoin in the region and potentially attract cryptocurrency-related businesses and investments.
5. Google Play Store Blocks Binance and OKX in India: Negative news. The blocking of Binance and OKX’s cryptocurrency exchange apps by the Google Play Store in India due to noncompliance with the Indian government’s notice could limit the accessibility of these exchanges to Indian users and affect their operations.
6. Do Kwon Requests SEC Trial Postponement: Neutral news. The requested postponement of Do Kwon’s trial due to extradition challenges does not have an immediate impact on the market. However, the outcome of the trial could potentially have implications for the perception and future regulation of the crypto industry.
