SEC Faces Uncertainty Amidst New Task Force and ETF Filing Surge
In January, notable developments in the crypto regulatory landscape include:
- End of SAB 121
- Donald Trump’s crypto executive order
- Creation of a new SEC task force
- Surge in ETF filings
Katherine Dowling, Bitwise general counsel, discussed regulatory dynamics between the SEC and CFTC, noting increased cooperation under Gary Gensler's leadership. However, uncertainty exists due to the pending confirmation of SEC chair nominee Paul Atkins.
Key points from Dowling's insights:
- The SEC is in a "purgatorial state" regarding ongoing litigations, including the case against Ripple.
- Assets like SOL and XRP are considered securities, complicating ETF proposals.
- A dogecoin ETF may have a clearer path as it has not been classified as a security.
- The SEC might require a regulated market of significant size for futures before advancing proposals for SOL and XRP.
- Patience is needed for ETF approvals; the first likely launch could involve a bitcoin and ether ETF.
Dowling emphasized that the regulatory process is multifaceted and requires time for resolution.