SEC slows approval of the Gryscale Crypt ETF and announces new review

Grayscale had received green light from the Sec To convert your background GDLC In an ETF crypt composed of five digital currencies. However, the agency backed down and indicated that it would review the resolution again, leaving without effect the approval announced yesterday.

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• The Sec announced an internal review of the recent approval granted to the conversion of the fund of Grayscale In ETF.
• The fund in question includes assets such as Bitcoin, Ethereum, XRP, Solana and Cardano.
• It has an estimated USD $ 755 million in cryptoactive.
• Although the approval was granted by delegation, the commissioners of the Sec Now they will reexamine the decision.

Yesterday, the US stock and securities commission (sec) approved that the background Digital Large Cap Fund (GDLC) of Grayscale It became a quoted background (ETF). However, after a completely unexpected event, the agency decided to suspend said verdict, and instead, will carry out an internal review to verify if said product can officially reach the market.

The decision was announced in a document published yesterday, reviewed by several media, where the Sec informed the New York Bag (NYSE) that will review the delegated action related to GDLC. “This letter is to notify you that, according to rule 431 of the commission’s practice rules […] The Commission will review the delegated action “the organism points out.

Originally, the ETF proposed by Grayscale was approved under a system of “Delegate Authority”that is, without direct vote of the commissioners. The agency’s staff were in charge of issuing the approval. But now, the Sec indicated that the initial order remains “Suspended until the commission provides otherwise”, So the conversion of the product to a quoted background is suspended until new notice.

The documentation presented by the Sec It does not specify which commissioner or commissioners requested the review, but the regulations allow any of them to do so. On previous occasions, these requests have been used to review denials to the ETF, which shows that this mechanism is not limited only to negative decisions.

In this case, the application could reflect broader regulatory concerns about funds related to cryptocurrencies, or an internal political review in response to the growing institutional pressure on the treatment of these assets.

At the moment, the SEC, Grayscale either NYSE They have offered more details about what happened.

The ETF crypto approved Grayscale

Grayscale It has been one of the most active firms in seeking institutional legitimacy for cryptoactive. His GDLC It seeks to give diversified exhibition to five of the main market tokens. Being linked to index COINDESK 5, the background is positioned as a tool that summarizes the pulse of large capitalization cryptocurrencies, which would be BTC, ETH, SOL, XRP and ADA.

The movement to convert the GDLC In an ETF it had been considered an important step to expand the access of institutional investors to this type of products. However, the pause imposed by the Sec It represents a new barrier in the process of integration of the crypto world with traditional markets.

This suspension could generate uncertainty among the actors of the financial ecosystem, especially considering that the GDLC It is not the only background waiting for conversion. Although there has been no official reason for the review, The decision suggests that within the Sec Internal doubts still persist on how to manage crypto products in the current regulatory framework.

This episode also highlights the difference between a technical approval under delegated authority and an approval fully backed by the commissioned body. The review could significantly delay the conversion of the GDLC, depending on the final result.

Expectations for other products

Although this represents a setback in the face of expectations in the crypto sector, the looks are still put on the next products waiting for approval of the Sec.

With applications for products based on SOL, XRP, AVAX, ADA, LTC, HBAR, DOGEand even memecoin Trump, A survey presented weeks ago estimates that the Sec He has more than 70 presentations under study, to which he must give an official verdict before closing 2025.

In the midst of high demand, analysts of Bloomberg, Eric Balchunas and James Seyffart estimate that most ETF crypt under study have at least 90% probability of being approved. The thesis is based on the new direction of the Sec And the change seen towards the digital asset sector, since it has closed processes against ecosystem companies and is establishing dialogues to design appropriate regulations.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Unspash

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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