Crypto Lawyer Says Government Shutdown Status Will Effect the SEC and Bitcoin ETF Approval Timeline
Owing to the ongoing US govt. shutdown, the nation’s SEC has not been able to carry out its operations as usual. In relation to the matter, Jake Chervinsky who works as a lawyer for Kobre and Kim tweeted out the following message just a few hours back:
Due to the shutdown, the SEC issued an order yesterday freezing all pending administrative proceedings until further notice. Nearly everything at the SEC is on hold now. Same story at the CFTC. We've already had to cancel several meetings with government lawyers. DC is quiet….
— Jake Chervinsky (@jchervinsky) January 17, 2019
Will The Shutdown Have An Effect On The SEC’s ETF Approval Process?
From a purely technical standpoint, if the SEC is not able to approve or deny ETF applications that have been submitted to it by a prescribed deadline, they will automatically be deemed approved via the following legislative act: 15 U.S.C. § 78s(b)(2)(D).
However, this scenario is quite unlikely to materialize since the government body will most likely make use of a one-page denial or a request for withdrawal (amongst other things) if matters come to such extremes.
In response to all these hypotheticals, Chervinsky was recently quoted as saying:
“Before now, the SEC's administrative proceedings were still moving forward & all deadlines remained in effect. Yesterday's order formally stayed those proceedings unless the chief administrative law judge grants a motion to lift the stay.”
For those interested, the above-stated order can be read by clicking on the following link: https://www.sec.gov/litigation/opinions/2019/33-10602.pdf …”