• BlackRock has filed an application to the SEC for a spot Bitcoin ETF.
• Coinbase will serve as custodian for the BTC holdings.
• U.S House Financial Services Committee Chair Patrick McHenry says he will “closely” watch how the SEC responds to BlackRock’s application.
BlackRock Files for Spot Bitcoin ETF
BlackRock, one of the world’s largest asset management firms, has filed an application to the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). The crypto firm Coinbase will serve as custodian for the BTC holdings associated with this ETF, if it is approved by the SEC.
Congressional Scrutiny on SEC’s Response
U.S House Financial Services Committee Chair Patrick McHenry said he would “closely” watch how the SEC responds to BlackRock’s application in a June 16 tweet. He noted that while the decision now rests with SEC Chair Gary Gensler, the financial regulator “must not pick winners and losers based on inconsistent factors.“
Binance US Cuts Staff Following Charges
In related news, Binance US reportedly cut 50 staff following charges from the Securities and Exchange Commission (SEC). The crypto exchange was accused of violating security laws by operating without registering with them first or obtaining a license.
Do Kwon Extends Detention
Do Kwon had his detention extended six months by Montenegrin court due to his alleged involvement in fraud and money laundering schemes through cryptocurrency projects such as Plus Token and Wotoken. Prosecutors also withdrew five charges against Sam Bankman-Fried in order to ensure that his trial proceeds on schedule.
The response from Congress suggests that if BlackRock’s spot Bitcoin ETF is approved by the SEC, they must explain why they rejected all previous applications from other crypto firms as well. Meanwhile, Binance US continues to face backlash from regulators and Do Kwon’s detention has been extended due to his alleged involvement in fraudulent activities