The SEC is taking a very close look at all exchange-traded funds, and they might impose “enhanced attention” rules. Tightened regulation of funds could be on the horizon, which, if this proposal is approved, could end up affecting all Bitcoin ETFs on the market today.
SEC Chairwoman Focuses on ETFs
According to SEC Chairwoman Mary Jo White, “recent events” are forcing the hand of the institution to potentially impose stricter regulation on the popular funds. In most cases, this will affect stock and bonds trading, but it may very well extend well beyond the scope of traditional finance, and include cryptocurrencies such as Bitcoin.
This decision was announced during Friday’s meeting, as the number of exchange-traded funds has quadrupled over the past ten years. With over US$2 trillion in net assets tied up in these funds, stricter regulation of these platforms seems justified, according to the SEC. However, no details were revealed as to how these changes would look, or when they will be implemented.