The U.S. Securities and Exchange Commission (SEC) is due to make a decision on the Vaneck Solidx bitcoin ETF next month, and the deadline cannot be extended further. However, since the U.S. government is currently shut down, a securities lawyer explains what is likely to happen to the ETF, including the likelihood of an automatic approval.
ETF Could Be Automatically Approved
Jake Chervinsky, a lawyer who focuses on litigation involving securities, commodities, futures and other derivatives, explained in a series of tweets on Friday how the current U.S. government shutdown could affect the upcoming decision on the Vaneck Solidx bitcoin exchange-traded fund (ETF).
The commission has designated a date by which it shall either approve or disapprove the proposed rule change filed by Cboe BZX Exchange to list and trade shares of Vaneck Solidx Bitcoin Trust. The “final deadline to approve or deny the ETF is February 27. That’s 240 days after the ETF proposal was first published in the Federal Register,” Chervinsky tweeted, emphasizing:
The SEC doesn’t have the power to extend the 240-day deadline. The statute absolutely prohibits any further delays … By law, that means if the SEC fails to make a decision by the February 27 deadline, the ETF will be automatically approved.
However, he proceeded to explain why it is “*extremely* unlikely” that the bitcoin ETF will be automatically approved.
SEC Not Totally Shut Down
While many U.S. government departments have completely shut down due to political deadlock between President Trump and Congress over the southern border wall, the SEC posted a notice on its website stating that “Effective Thursday,