The US Securities and Exchange Commission (SEC) seems to have no plans of regulating Bitcoin and the crypto market this year. The 2021 Regulatory Agenda released by the top regulatory body has left out any mention of Bitcoin or crypto assets.
A change in administration along with the growing adoption of Bitcoin this year gave hopes to many enthusiasts of possible market-friendly crypto regulations. However, the strict policies and continuous calls for caution against crypto investments by top regulatory bodies indicate otherwise.
Regulatory policymakers have continued their passive stance towards Bitcoin and other crypto assets, despite major banking giants including JP Morgan, Morgan Stanley, and many others started offering Bitcoin exposure amid growing clients demand.
The Basel Committee on Banking Supervision decided to recognize Bitcoin as an asset class but proposed a risk weightage of 1,250%. It means banks willing to offer Bitcoin services would be required to hold cash equivalent as per the risk weightage.
Would Bitcoin ETF Application Get Delayed Again?
A total of 8 Bitcoin ETF proposals are pending before the SEC filed by various financial institutions, out of these two have already been delayed. The recent update from SEC could mean the ETF proposals might take a backseat again.
The US regulators might have their reservations but Canada has already approved both Bitcoin and Ether ETFs that have turned out to be a great success. The first Bitcoin ETF by Purpose Group became an instant hit that raised the hopes of many American counterparts since the US market is 10X the size of the Canadian market. However, looking at the current sentiment of the top regulators in the US, the Bitcoin ETF might not get approved.
Gary Gensler, the new SEC chief was seen as a better alternative to his predecessor, raising the hopes of crypto enthusiasts even higher, but there hasn’t been much difference in his approach towards crypto when compared to Jay Clayton.