On October 11th, the U.S. Securities and Exchange Commission (SEC) announced an extension of its decision-making process regarding the Cboe Exchange, Inc.'s proposal to list and trade options on exchange-traded products (ETPs) tied to Ethereum, citing the need for additional time to evaluate the proposal's implications.
On August 19th, Cboe Exchange, Inc. filed a proposed rule change with the SEC to amend its rules for listing and trading options on Units, including major Ethereum-focused ETFs, such as the Fidelity Ethereum Fund, Grayscale Ethereum Trust, and iShares Ethereum Trust ETF. The rule change was initially published for public comment on September 4th, 2024. The SEC, however, did not receive any public comments on the proposed amendments.
The SEC has now designated a longer period for action on the proposal, moving the deadline from October 19th to December 3rd, 2024. The extension is aimed at giving the Commission additional time to fully assess the impact of allowing options trading on Ethereum-based exchange-traded products.
"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 the proposed rule change," said Sherry R. Haywood, Assistant Secretary for the Commission.
Many argue that the SEC's cautious approach is stifling innovation within the burgeoning cryptocurrency industry. Without clear regulatory frameworks, market actors face difficulties in developing products and services that could provide investors with new opportunities while managing risk.
The U.S. Securities and Exchange Commission (SEC) is a federal government agency responsible for regulating and overseeing the securities markets in the United States.
According to a Social Capital Markets report, the total monetary penalties imposed by the SEC on the crypto industry since 2013 have reached $7.42 billion, with 63% of this amount being collected in 2024 alone.
Social Capital Markets report that the $1.24 billion fine imposed on Telegram Group Inc. and TON Issuer Inc. in 2019 caused a nearly 2000% increase in the average fine, signaling a notable shift in the SEC’s enforcement strategy.
