The U.S. Securities and Exchange Commission (SEC) has prolonged the review period for Nasdaq's proposal to list and trade shares of the 21Shares Polkadot Trust due to unresolved investor protection concerns.
Proposal Overview
Filed by Nasdaq on March 17, 2025, the proposal seeks to list an investment product directly tied to Polkadot (DOT). If approved, it would be one of the first U.S.-listed investment products linked to this cryptocurrency.
Reasons for Extended Review
The SEC stated that further analysis is needed to determine if the proposal complies with section 6(b)(5) of the Securities Exchange Act, which mandates measures to prevent fraud and manipulation while protecting investors.
Next Steps for SEC
Additionally, the regulator is seeking public input and is opening a comment window. Interested parties, including investors and industry experts, are invited to submit written comments within 21 days of the proposal's publication in the Federal Register.
For 21Shares and other ETF issuers looking to expand beyond Bitcoin and Ethereum, the SEC's decision will serve as a critical benchmark. With the new chairman Paul Atkins at the helm, crypto enthusiasts hold high hopes.
