SEC's Pause of Grayscale Fund Is Likely Temporary
2025-07-03 21:13:39
Main Idea
The SEC's pause on Grayscale's Digital Large Cap Fund ETF is likely due to administrative reasons related to listing standards, not political motivations, according to sources familiar with the matter.
Key Points
1. The SEC paused the launch of Grayscale's GDLC ETF to develop listing standards for other ETFs that would use the same mechanism.
2. GDLC includes XRP and Cardano, which currently do not have individual ETFs, unlike Bitcoin, Ethereum, and Solana.
3. Bloomberg Intelligence ETF analyst James Seyffart noted that the SEC's pause was unusual, as the agency typically does not halt launches under the 19b-4 process until certain conditions are met.
4. Grayscale stated that the SEC's pause was unexpected but reflects the evolving regulatory landscape for first-of-its-kind digital asset products.
5. The SEC faces upcoming deadlines for XRP, ADA, and SOL ETF applications later in the year.
Description
The U.S. Securities and Exchange Commission likely halted the launch of the Grayscale Digital Large Cap Fund (GDLC) for administrative reasons, not political ones, multiple individuals familiar with the matter told CoinDesk. The SEC approved GDLC to uplist as an exchange-traded fund (ETF) on Tuesday through staffers' delegated authority, meaning the regulator's commissioners did not have to vote on the application. Nevertheless, the regulator informed Grayscale and the New York Stock Exchange — ...
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