The U.S. Securities and Exchange Commission (SEC) has extended its deadline for ruling on in-kind redemptions for two separate crypto ETFs that may affect asset taxation.
SEC Deadline Extension
On Wednesday, the SEC announced an extended deadline for deciding on in-kind redemptions for Bitcoin and Ether ETFs presented by Bitwise. The new decision timeline is now 45 days, extendable to a maximum of 90 days. The document states, 'The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider.'
Criticism of SEC Delays
This delay is not the first: recently, attorneys for digital asset manager Grayscale accused the SEC of delaying its Digital Large Cap ETF approval, which had previously been granted. According to Grayscale's lawyers, this violates the statutory approval or disapproval deadline and conflicts with established procedures.
Changes in Crypto Approach
Since the Trump administration took power and Paul Atkins was appointed SEC Chair, the regulator's stance towards crypto has changed significantly. Atkins noted that the SEC now views tokenization as an 'innovation' to be encouraged in the marketplace, contrasting with the previous approach that hindered innovation.
The SEC's extension of deadlines for in-kind redemptions in crypto ETFs raises new questions regarding asset taxation and reflects the regulatory changes towards innovation in the cryptocurrency sector.
