According to a post by X’s Eleanor Terrett, the SEC has decided to delay the decision until June 3rd that BTC and ETH Spot ETF Indic TreeFunds and Vaneck will be able to handle the in-kind work and redemption.
She explained that “in-kind” involves directly exchanging underlying assets (such as Bitcoin or Ethereum) without the need to convert the inside and outside of cash. Regulators were opposed to in-kind work because it also helped people avoid taxable events, despite helping to maintain liquidity and price stability.
The SEC is delaying its decision to allow BTC and ETH Spot ETF works and redemptions until June 3rd. Source: Eleanor Terrett
The SEC is still paying attention
Eleanor Terrett’s post about X on the postponement sparked attention and comments as netizens placed emphasis on their opinions and questions.
One user asked whether retail investors could avoid taxable events in physical form. Terrett responded by pointing out that it benefits mainly the issuer and certified participants (AP), not retail investors.
The SEC’s delay in ETF redemption is reminiscent of the careful attitude that characterizes the Gary Gensler SEC during the Biden administration. Pure trading protects investors from unnecessary tax hits and streamlines the crypto market in line with Trump’s executive order on digital assets. However, the SEC continues to limp, refuses to abandon its outdated cash-based model, negatively affecting liquidity and market confidence.
This approach, which was common under Gensler, was one of the things that hindered crypto innovation in America, and people were expecting a different approach under Paul Atkins.
“It wasn’t on my bingo card that Paul Atkins would come in and delay things,” one user wrote.
Another pointed out that delays keep the crypto industry as investors can’t decide whether the SEC will ease that stance or bring out more red tapes.
Things may speed up if Paul Atkins officially takes over
Some users of X seem to think that all these delays from the SEC have something to do with the new SEC head, Paul Atkins. Unlike Gensler, Atkins actually appears to be interested in crypto innovation, in contrast to regulations, so people have always hoped that the SEC would do more to improve things for the industry.
However, a few hours ago, Terrett revealed that Paul Atkins hadn’t taken a seat in the SEC yet.
“There are some procedural steps before President Trump can officially begin to sign his appointment and formal oath,” she added. “This could happen anytime in the next few days, so stay tuned.”
Terrett later revealed that Trump’s “sign-off” was “purely procedural” and “essentially a ministerial function and part of a standard paperwork process.”
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