SEC Victory Sparks Evolving Cryptocurrency Legal Landscape: Coinbase and Binance Face Ongoing Battles After Terraform Precedent

The recent submission of amended documents by major exchanges, such as BlackRock, Grayscale, and Fidelity and other issuers, reflects a strong conviction in the imminent approval of the first U.S. spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). These amended 19b-4 filings, coupled with adjustments made in the S-1 filings last month, indicate a proactive response to feedback provided by the SEC.

With over a dozen applicants vying to introduce the inaugural spot bitcoin ETFs in the U.S., there is anticipation that multiple issuers might receive simultaneous approval. The looming deadline for SEC action on at least one application, particularly from Ark 21 Shares, scheduled for January 10, suggests the regulator may greenlight all final applications it deems suitable by that date.

Grayscale, a prominent player in the cryptocurrency market, expressed optimism regarding the filing. They see it as a pivotal step towards transforming their bitcoin trust, GBTC, into a recognized spot bitcoin ETF. Jenn Rosenthal, a spokesperson for Grayscale, emphasized the company's ongoing collaboration with the SEC and readiness to operate GBTC as an ETF once the necessary regulatory approvals are secured.

Recent reports from Bloomberg have hinted that the SEC's commissioners are gearing up to vote on the exchange-rule filings in the upcoming week. The regulatory body's approval is paramount for both the 19b-4 and S-1 filings, serving as a prerequisite for the eventual launch of the eagerly awaited ETFs. The cryptocurrency community now awaits the SEC's decision, which will undoubtedly shape the future landscape of spot bitcoin investments in the United States.

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