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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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.

13 Jan, 2025

Malaysia PM: Govt Exploring Policy for Crypto, Blockchain Tech

ABU DHABI: The government is looking at formulating a policy on digital finance, which could eventually see cryptocurrency and blockchain technology recognised in Malaysia.Malaysia Prime Minister Datuk Seri Anwar Ibrahim said he had discussed with the Abu Dhabi government and cryptocurrency and blockchain technology giant Binance to study how to move forward with the idea."We have talked about digital transformation, data centres and artificial intelligence (AI). We now face demands which require us to think about making significant changes."I had lengthy discussions with the Abu Dhabi leadership and Changpeng Zhao, co-founder of the world's largest cryptocurrency platform Binance."I proposed several months ago how our agencies, including security, treasury and Bank Negara study how Malaysia can explore this so we aren't left behind. Ensuring that is regulated could safeguard the people's interests and prevent leakages," he told Malaysian media at the end of his three-day official visit to Abu Dhabi today.Anwar said he would be consulting the cabinet on the move."However, this innovation is just like AI, which would revamp the financial world. We should not sit idly by and wait and later be forced to do so after others have done it already," he said.He cited the example of the United Arab Emirates, which is now a leader in the field."They (UAE leaders) feel that they can forge a close cooperation with Malaysia on this issue. We need to discuss this in detail, leave behind the old business model and give meaning to this digital finance policy."We have discussed at length about fintech. But when something new comes about, we get agitated."I hope we can be more open to this. I am leaning towards not just approving but also expediting this," he said.He said Malaysia would not be starting from scratch but would rely on the experiences of others including Binance and the UAE."This is an evolution which happens quickly and requires us to be equally fast. We feel that Malaysia should not be left behind while mired in an old financial system," he said.Asked when this policy would take place, he said it would require comprehensive studies from the Treasury, the Securities Commission and Bank Negara Malaysia."As with all new ideas raised, there will be some concerns. We have to train our personnel, develop competency, and get the players to participate."What is pertinent is that we have excellent relations with the UAE. We told them that we would move on this on the condition that we work as partners to ensure that things are on track."This will be a radical departure from the old ways."Anwar said a paper on the issue would be drafted and presented to the cabinet for endorsement as soon as possible.