The world of cryptocurrency is eagerly awaiting November 14th

The US Securities and Exchange Commission has to make a decision on the approval of the Bitcoin ETF spot fund by November 14th.

On November 14th, the US Securities and Exchange Commission (SEK) will decide on the admission of VanEcks Spot (Spot) Bitcoin ETF. This decision could have a huge impact on the crypto world.

This agency had previously delayed the decision on VanEck’s fund application twice. However, the 240 day deadline comes and you have to make a final decision. Before that time, many experts were pretty pessimistic.

“I don’t think a spot ETF will have a chance to work in the next three years,” said Dave Nadig, research director at ETF Trends.

The chance of admission is very low

Statements from executives SEK caused investors to lose hope for the future of bitcoin. In it the chairman SEK, Mr. Gary Gensler expressed his reluctance to expand crypto-related activities. This is because current regulations in the US have not given the regulator sufficient control over the exchange of cryptocurrencies.

At the same time, the bill on the US infrastructure package will make investments in cryptocurrencies more difficult.

This form of Bitcoin investment via ETF helps large funds to benefit from rising Bitcoin prices without having to buy this cryptocurrency directly. Photo: Bloomberg.

On August 3, Gary Gensler laid out the necessary precautions to protect cryptocurrency investors.

“Given user protection, I would expect staff to review records of funds that are restricted to the Bitcoin futures area,” Gensler said at the Aspen Security Forum.

On October 19, the ProShares Bitcoin Strategy ETF futures fund was approved. The second Bitcoin futures ETF, the Valkyrie Bitcoin Strategy ETF, was also approved by the US government on October 22nd.

However, according to CNBC, the types of futures funds are fairly clearly regulated by law, while Bitcoin exchanges are not legally binding. That is the reason SEK difficult to approve a spot bitcoin ETF.

Mark Palmer, digital asset analyst at BTIG, said a spot ETF could take until 2022 to get approval.

“Gensler made it clear that a Bitcoin ETF will not have a regulator. I think few investors understand this reality, ”said Palmer.

Decentralized finances could “die” because of the new US law

Cryptocurrency investors are also concerned about the impact of the new US Congress infrastructure bill. President Joe Biden will sign the bill.

Therein, the first clause requires that digital asset owners be valued at more than 10,000 USD must have sender information. At the same time, these people must fill out tax forms and transaction descriptions with the Internal Revenue Service.

With DeFi, users don’t have to verify their identity. So if this bill is passed, it could be a “dark side” for the gradual freeze on decentralized finances. Coinbase CEO Brian Armstrong called the deployment a disaster. “The US government’s new regulation could kill DeFi,” said Armstrong.

In the second clause, the intermediary is responsible for and is subject to the broker’s tax requirements. This will harm blockchain users. According to Model Citizen, the bill could turn cryptocurrency miners into middlemen in a transaction.

Michelle Bond, former senior consultant at SEK argues that the new conditions are a negative point for the development of the cryptocurrency sector. President Joe Biden is ready to approve the new bill, but Michelle Bond believes the coin market can still grow.

These regulations won’t come into effect until 2024, which will give the blockchain industry more time to keep going.

“The development of the blockchain is not yet complete. I think this is going to be a long way. There will be legislative corrections and the industry can build the rule in the future, ”said Michelle Bond.

A khang

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