US SEC To Impose New Reporting Rules, Will It Impact Bitcoin & Ether ETF Issuers?

The US SEC is reportedly moving ahead with implementing a nod for new rules for exchange-traded funds (ETF) and mutual funds. According to a recent report, the agency is seeking to implement the new rule to enhance transparency in the market and keep investors informed. The investors are seeking to explore the impact of the new rule, which is expected to be approved today, on the Bitcoin and Ethereum ETF issuers.

US SEC Implements New Rules For Investment Funds

The US SEC will require ETF and mutual funds to report their portfolio holdings on a monthly basis, instead of the current quarterly requirement. According to a Reuters report, the agency is set to approve the rule changes today in a meeting. Notably, this move would aid investors in making informed decisions with more transparency in the market.

The report said that under the new rules, the funds will have to file reports with the regulators within 30 days after the end of each month. However, the data will become public after another 30 days. This shift in regulation is expected to come into effect by November 2025, with smaller funds having until May 2026 to comply.

Meanwhile, the officials said that the initial proposal included broader regulations like “swing pricing” to mitigate market risks. However, the plans are then scaled back due to industry opposition.

Instead, the SEC is now aiming to refine the existing rules around liquidity risk management in “open-end” funds, which would allow traders to redeem their shares daily. The proposed regulations, as per the report, focus on bringing clarity on asset liquidity classifications and other key terms to ensure compliance and investor protection.

However, the rule changes have sparked discussions over its potential impact on Bitcoin and Ethereum ETFs. Crypto market enthusiasts, who are already worried about the agency’s stance towards the digital assets space, are closely watching how these rules could impact the growing crypto ETF market.

Potential Impact On Bitcoin And Ethereum ETF

The new reporting requirements could have a direct impact on Bitcoin and Ether ETF issuers. For context, the issuers are also expected to comply with the same monthly reporting standards as traditional funds.

Meanwhile, this could enhance transparency for investors interested in the investment instrument, providing them with up-to-date information on holdings and market movements. Besides, given the recent optimism surrounding these ETFs, increased transparency might be seen as a positive step for the market.

However, concerns are also growing as the recent move follows a recent wells notice issued by the US SEC to OpenSea. The agency has targeted the marketplace over the classification of NFTs as securities.

This action has fueled accusations of regulatory overreach into the digital asset space, with some critics suggesting the agency’s actions are politically motivated. Notably, Bitcoin the timing of the SEC’s action against OpenSea comes just after the launch of Donald Trump’s latest NFT launch, sparking further debates in the market.

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Rupam Roy

Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.