BlackRock has argued against the Securities and Exchange Commission (SEC) that it cannot treat spot and future crypto ETF applications differently.
In its spot Ether ETF application filing, submitted by Nasdaq, BlackRock questioned the SEC’s view on spot crypto ETFs, asserting that the agency is denying applications based on regulatory distinctions between spot and future crypto ETFs.
The argument from BlackRock arises as the agency has continued to deny spot crypto ETFs to a number of applicants while allowing crypto future ETFs.
BlackRock’s spot Ether ETF application was recently filed with the SEC and submitted by Nasdaq.
SEC believes that crypto future ETFs fall under superior regulations under the 1940 Act which provide greater consumer protections, whereas spot crypto ETFs fall under the 1933 Act.
BlackRock, however, opposes the relevance of the 1940 Act for crypto assets, stating that it has certain restrictions on ETFs and ETF issuers while not on the underlying asset for the ETF.
While the SEC’s approval of the Chicago Mercantile Exchange (CME) for future crypto ETFs was dependent on belief in its regulation and surveillance-sharing agreements, BlackRock said that it has determined that the spot market fraud at CME could also affect the spot ETFs.
