SEC still in purgatorial state despite positive signals

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In January, Donald Trump issued his crypto-executive order. A new SEC taskforce was also created. 

Katherine Dowling is the general counsel at Bitwise. 

She has, in fact, plotted ETFs to hold XRP (and, more recently, dogecoin) as well.

Dowling, a former assistant US attorney at the Northern District of California’s US Attorney’s Office in the Economic Crimes Unit, described the regulatory work she did as “siloed” in recent years — with SEC Chair Gary Gensler and the CFTC’s Rostin Behnam having “different views behind the scenes.”

Gensler era, one of the most significant changes is the increased SEC/CFTC co-operation.”which now we can refer to as the past,” she quipped).  

Crypto taskforce seems to be a good idea “incredibly genuine” Dowling explained that Bitwise’s dialogue with SEC will be based upon this.

Dowling described Dowling as being an intolerant securities regulator. “a purgatorial state” Paul Atkins’ nomination as SEC Chair has yet to be confirmed. Mark Uyeda currently serves as interim chair.

SEC seems to be on the lookout for “directive from up high” For example, you can learn how to deal with litigation. You’ve likely read about the Ripple case.

“Overnight those don’t just go away, nor should they,” Dowling, said. “But when you have new leadership, there’s a new set of eyes. Are we looking at the right things in this particular case? Is there a settlement stance where we can both get what we want?”

Bitwise’s executive noted that certain assets still remain “caught up like dolphins in the fish nets.” She’s alluding to those apparently classified as securities — SOL and XRP among them.

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You can also find out more about it by clicking here. “needs to give” on that front before the SEC can move those ETF proposals along — justifying that purgatory, so to speak.

Dowling said that Dowling believed an ETF that held dogecoin would have a better path. Dowling suggested that an ETF holding dogecoin could have a clearer path.

Beyond the litigation/securities uncertainty, there’s the question of whether the SEC will require the existence of “a regulated market of significant size” (historially through CME-traded Futures) 

SOL and XRP futures are coming, Dowling opined — and spot products beyond BTC and ETH exist in other jurisdictions. The SEC may want to hold off on XRP futures and solana until US products with those currencies are released.

“But if we can come at it from a different angle and provide another line of argument that gets them comfortable with that, that is great too,” Dowling, said.

What will it take to complete this?

After a brief laugh, (remembering that she had worked for the SEC at the US attorney’s office), she said: “I always remind people … this is just one subset of what they’re doing.”

Yes, you’re right, patience is key. What are the chances of a near-term launch? US ETF that holds both bitcoin and Ethereum. Bitwise has received approval under 19b-4 for this. S-1 must be cleared by the SEC.

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leadzevs/ author of the article

LeadZevs (John Lesley) is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.

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