What the SEC Leadership Change Means for Litecoin and Solana ETFs_blog

17 Jan, 2025

What the SEC Leadership Change Means for Litecoin and Solana ETFs

The cryptocurrency ETF market is in flux as the SEC leadership transitions, significantly impacting the prospects of Litecoin and Solana ETFs. With Gary Gensler stepping down as SEC Chair on January 20, the regulatory approach could shift dramatically, affecting approvals for these and other digital asset products.

Litecoin ETF Progress and Key Developments

Litecoin’s ETF application has gained substantial momentum, with Nasdaq recently submitting a 19b-4 filing on behalf of Canary Capital. This filing is pivotal, marking a significant step toward regulatory approval. Key stakeholders have identified US Bancorp Fund Services as the ETF’s administrator, while Coinbase Custody Trust Company is slated to manage Litecoin’s holdings.Bloomberg analyst Eric Balchunas highlighted the positive trajectory for Litecoin, citing feedback from the SEC on its S-1 filing. Canary Capital’s consistent engagement with the SEC, including updates to its initial October filing, underscores its commitment to securing approval. Market sentiment suggests that Litecoin is a strong contender for the next cryptocurrency to achieve ETF status.

Solana Faces Regulatory Challenges

Solana’s path to ETF approval has been less favorable. Reports from Fox journalist Eleanor Terrett revealed that Solana’s ETF application faced rejection during Gensler’s tenure, with its 19b-4 filing turned down. This setback highlights the challenges for cryptocurrencies navigating the SEC’s rigorous standards.

While Solana’s prospects remain uncertain, the upcoming SEC leadership change offers a potential opportunity for reevaluation. The crypto community is hopeful that the incoming chair will adopt a more inclusive approach, reshaping the regulatory landscape for ETFs.

Broader Implications of SEC Leadership Transition

The impending inauguration of a pro-crypto administration and the anticipated nomination of Paul Atkins as the next SEC Chair could usher in a friendlier regulatory environment. This shift may accelerate approvals for various ETFs, including those for Litecoin, XRP, and Hedera.As asset managers like Bitwise, WisdomTree, and VanEck compete for ETF listings, the crypto industry anticipates 2025 as a potential breakthrough year. The increasing receptiveness of U.S. regulators toward cryptocurrency underscores the growing institutional interest in digital assets.

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20 Jan, 2025

Laos-China Railway Expands Services for Chinese New Year Travelers

With the Chinese New Year approaching, the Laos-China Railway has rolled out special measures at the Bohan Railway Border, including expanded counter services and a lane for travelers, to manage the surge in passenger flow.Starting from 13 January, the Bohan Railway Border has expanded its counter services and opened a dedicated lane for “People Returning Home During the Chinese New Year.” This special crossing prioritizes elderly travelers, pregnant women, children, and others needing extra assistance. The lane was usually reserved for emergencies and now has been opened for the holiday season to help ease congestion. Additional measures, including “classified crossings” and “peak service windows,” have also been implemented to improve efficiency for all passengers.In Vientiane, the Chinese New Year celebrations officially began on 15 January with an opening ceremony under the theme “Drinking from the Same River, Living in Harmony as One Family.” The event highlighted the cultural bond between Laos and China, with both the Chinese New Year and the Lao Lam Vong Dance recently recognized as UNESCO World Cultural Heritage.The following day, the arrival of the D87 train from Kunming to Vientiane marked the start of the Spring Festival cultural event along the China-Laos Railway. Passengers experienced live performances by Chinese and Lao artists, turning the train journey into a lively cultural experience including traditional songs, dances, and festive activities, such as the sampling of Pu’er tea and Yunnan coffee.

15 Jan, 2025

Thailand Considers Approving Local Bitcoin ETFs Amid Global Competition

Quick Take① Thailand’s Securities and Exchange Commission is considering allowing local bitcoin ETFs to list on local exchanges, according to Bloomberg.② The regulator has previously approved a local fund-of-funds that offers institutional investors exposure to overseas bitcoin ETFs.Thailand Considers Approving Local Bitcoin ETFs Amid Global CompetitionThailand’s top financial authority is considering allowing bitcoin exchange-traded funds to list on local exchanges.Pornanong Budsaratragoon, Secretary-General of the Securities and Exchange Commission, said on Tuesday that the regulator is contemplating permitting individual and institutional investments in local bitcoin ETFs that would offer direct exposure to bitcoin, according to Bloomberg.Thailand’s SEC previously permitted asset management firms in March 2024 to launch funds for investing in U.S. spot bitcoin ETFs available for institutional investors. In June, One Asset Management launched a fund-of-funds — limited to professional and institutional investors — offering exposure to overseas bitcoin ETFs.Budsaratragoon said in the news report that the country has to “move along with more adoption of cryptocurrenices worldwide,” and that the regulator must adapt and ensure that investors “have more options in crypto assets with proper protection.”The SEC did not immediately respond to The Block’s request for comment.The regulator previously said in January 2024 that it was monitoring the development of overseas spot crypto ETFs but had no plan to allow such products in the country.Thailand has attracted some global crypto exchanges, such as Binance, to set up shop in the country. In January 2024, Binance announced that Gulf Binance — a joint venture between Binance and Thailand’s Gulf Innova — launched crypto exchange services to the general public in Thailand.