tl;dr
SEC Commissioner Caroline Crenshaw has blocked the fast-track approval of several cryptocurrency ETF products by delaying applications and dissenting on options trading and basket ETFs. This forces the SEC to hold full votes, slowing the approval process despite pro-crypto Commissioners who could ou...
SEC Commissioner Caroline Crenshaw has blocked a fast-track approval process for several cryptocurrency ETF products. Her actions include delaying multiple new applications and dissenting on issues like options trading and basket ETFs. As a result, the Commission now must hold full votes to approve these measures, leading to anticipated delays. Although pro-crypto Commissioners like Gary Gensler and Hester Peirce could outvote her, the approval process will inevitably slow down.
The SEC's cautious pace on crypto ETFs comes despite initial optimism following new leadership this year. Recent weeks have shown repeated delays and minor setbacks even amid bullish developments. According to Greg Xethalis, General Counsel at Multicoin Capital, a delegated authority procedure allows streamlined SEC decisions, but any single Commissioner can force the Commission to revert to a slower, full-vote process. Crenshaw, known as the most anti-crypto Commissioner, invoked this right to slow several crypto ETF-related votes in a single day.
Crenshaw’s opposition has significant implications. After the crypto industry blocked her SEC re-nomination, she has opposed the Commission’s newer pro-crypto agenda with vigor. She voted against 13 different crypto ETF proposals, covering multicoin basket products and options trading. Some proposals passed nonetheless, but the process grew cumbersome. This indicates the SEC can still approve crypto-friendly ETFs, but expect more hurdles and delays.
The delay represents a setback for the SEC’s efforts to streamline altcoin ETF approvals. Investors and industry watchers should anticipate a slower timetable for ETF-related proposals moving forward. Though progress will continue, the crypto community must be prepared for ongoing procedural challenges before seeing widespread crypto ETF adoption.