The United States Securities and Exchange Commission (SEC) extended its deadline for ruling on in-kind redemptions for two separate crypto exchange-traded funds (ETFs).According to a Wednesday SEC filing, the regulator will take more time to decide whether to allow in-kind redemptions on NYSE Arca for Bitwises Bitcoin (BTC) and Ether (ETH) spot ETFs.
The time limit for the decision was extended, but the underlying limit remains 45days, extendable to no more than90.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, and the issues raised therein, the announcement read.In-kind redemptions would allow investors to redeem ETFs for the underlying assets directly, in this case, Bitcoin or Ether.
This could have tax implications, as assets would be redeemed in-kind rather than liquidated for cash.SEC's deadline extension filing.
Source: SECRelated: US regulator considers simplified path to market for crypto ETFsSEC accused of foot-draggingThis deadline extension is far from the first one by the SEC when it comes to crypto-relevant decisions.
Earlier this month, attorneys for digital asset manager Grayscale pushed back against the US SEC's delay in approving its Digital Large Cap ETF.The SEC had previously approved the product, but the regulators Office of the Secretary decided to review the action shortly thereafter and halted the decision.
According to Grayscales attorneys, this violated the statutory approval or disapproval deadline and conflicted with established procedure.Related: First US staking ETF to launch Wednesday, giving investors exposure to SolanaSEC changes approach to cryptoDespite the ongoing conflicts, most agree that since the Trump administration took power in Washington and SEC Chair Paul Atkins assumed the position previously held by Gary Gensler, the regulators stance toward crypto has changed significantly.Earlier this month, Atkins said that the regulator now sees tokenization as an innovation to be encouraged in the marketplace.
He also highlighted how his approach differs from his predecessors, noting that the SEC had previously hindered innovation through vague laws and regulation through enforcement, before adding:That day is over.Atkins said that his goal when it comes to crypto rules is regulatory transparency and establishing a foundation that allows for innovation and new products.Magazine: SECs U-turn on crypto leaves key questions unanswered