Swiss Bank SEBA has taken a significant leap forward by securing permission to conduct cryptocurrency operations in Hong Kong. On Wednesday, the Hong Kong regional branch of the Swiss crypto bank received an approval-in-principle (AIP) from the city’s securities regulator. This marks the initial step towards becoming a licensed virtual asset service provider in the crypto-friendly environment of Hong Kong.
In stark contrast, the regulatory landscape in the United States remains fraught with uncertainty. Attorney John Deaton has drawn attention to the recent actions of the Securities and Exchange Commission (SEC) concerning digital asset regulation.
SEC’s Regulatory Ambiguity in the United States
Deaton, the founder of a crypto law firm, highlighted the situation in the United States in a recent tweet, juxtaposing it with SEBA’s success in Hong Kong. Deaton emphasized that the U.S. Court of Appeals for the District of Columbia Circuit had ruled the SEC’s rejection of Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF as “arbitrary and capricious.” The court further declared the SEC’s stance on Bitcoin as “incoherent,” suggesting that the SEC’s arguments for denying Grayscale’s application were contradictory and lacked logical consistency.
This court ruling signifies a significant victory for the cryptocurrency industry and raises the possibility of a spot Bitcoin ETF receiving approval in the near future. However, Gary Gensler, the chairman of the SEC, remains unconvinced that a spot Bitcoin ETF is in the best interest of investors. He has also expressed willingness to consider revoking the approval of existing Bitcoin futures ETFs.
The broader context implies that the United States may harbor an “anti-crypto” sentiment within its regulatory landscape. During the oral arguments in a case involving Grayscale, a digital asset management company, appellate judges raised questions about whether the SEC would reconsider its stance on Bitcoin futures ETFs. This indicates that even the judiciary is seeking clarity regarding regulatory direction and potential shifts in the SEC’s position.
The SEC’s position on Bitcoin remains a topic of controversy and has faced criticism from many within the crypto industry. Some argue that the SEC is overly cautious and fails to provide Bitcoin with the fair treatment it deserves, while others believe that caution is warranted due to the perceived risks associated with Bitcoin investments.
