The attitude of the United States towards the crypto world has never seemed so paradoxical. On the one hand, the Security and Exchange Commission (SEC) is increasing attacks against crypto giants. The other, the race to create the first bitcoin ETF (Exchange-Traded Funds) intensifies a little more every day. And a giant step has just been taken. The Cboe (Chicago Board of Options Exchange), the largest US derivatives exchange, has just announced a monitoring agreement with Coinbase for 5 bitcoin spot ETFs. An agreement that paves the way for a future presence of crypto funds in major American exchanges? Not so sure.
5 ETFs and high stakes
“On June 21, 2023, the Exchange entered into an agreement with Coinbase on terms for sharing surveillance (“Spot BTC SSA”) and an associated roadmap.” This was stated by the Cboe in one of the 5 amendments tabled Tuesday regarding bitcoin ETFs. The stakes are high, because they concern major investment players: Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin ETF and ARK 21Shares Bitcoin ETF.
This announcement is, whatever happens, a big blow made by Coinbase. The proof, many companies, including big names such as BlackRock and Fidelityhave previously listed the San Francisco-based company as surveillance sharing partner. The revolution is on? Not so sure, because there is still a big step to take.
The SEC, not very crypto friendly…
Because as the Cboe website indicates, cEach amendment must be validated by the Security and Exchange Commission (SEC). Firstly, the latter has not yet never approved a spot bitcoin ETF. She justified the refusals of the previous requests by concerns about possibilities of fraud and market manipulation.
Moreover, it is needless to recall that the SEC has ramped up attacks on crypto giants this year. And Coinbase is no exception, quite the contrary. In June, the American financial policeman filed a complaint against the San Francisco-based firm on numerous grounds. First, she criticizes Coinbase for not having registered a significant number of securities law assets. As its staking services. “You can’t ignore the rules because you don’t like them or because you prefer different ones. The consequences for investors are far too great,” said Gurbir S. Grewal, director of the SEC’s Enforcement Division.
It therefore seems difficult, in this context, for the amendments tabled by the Cboe to be validated by the SEC. But can financial exchanges operate for a long time by neglecting crypto investment funds and financial products? Observing the meteoric progress in the world of cryptos and blockchain for years, the answer seems clearly no. In the meantime, we still have to wait for the SEC’s decision on these amendments. A miracle is never to be excluded.
Sources: Theblock, Reuters, Cointelegraph