Despite multiple meetings between ETF applicants and the SEC staff, resulting in clarifications and resubmissions of applications, it is believed that they have not yet met all the necessary SEC requirements for approval. While these discrepancies could potentially be resolved by the second quarter of 2024, Thielen suggests that the SEC will reject all proposals in January.
“Although there have been efforts to address the SEC’s requirements, we believe they have not yet achieved compliance. As a result, we anticipate the rejection of all proposals in January and the potential resolution of these discrepancies by the second quarter of 2024,” explained the Matrixport expert.
Thielen emphasizes two key factors influencing this forecast: the negative stance of the SEC’s pro-Democratic majority towards the crypto industry and the cautious approach of Chairman Gary Gensler concerning the use of cryptocurrency in the US.
Chairman Gensler previously expressed concerns about fraud and high-profile bankruptcies within the US digital finance industry, considering many projects to be speculative investment contracts.