SEC Extends Decision Timeline for Polkadot, Hedera ETFs to June

The U.S. Securities and Exchange Commission (SEC) has extended its decision-making timeline for several proposals aimed at listing and trading cryptocurrency funds based on Polkadot's DOT and Hedera's HBAR tokens. The agency is currently evaluating numerous filings for the launch of crypto exchange-traded funds (ETFs).

The SEC has postponed its decision until June 11 for approving or disapproving a proposal from Grayscale to convert its Polkadot Trust, as well as a proposal from Canary to list an HBAR ETF. The original deadline for these decisions was the end of this week. Additionally, the agency has delayed a decision on the Bitwise Bitcoin and Ethereum ETF until June 10.

In the HBAR filing, the SEC stated, "The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change, as modified by Amendment No. 1, so that it has sufficient time to consider the proposed rule change and the issues raised therein."

Filings for the Grayscale Polkadot Trust and the Canary HBAR ETF were submitted in February. This move comes as firms seek to launch a variety of crypto ETFs, reflecting a more crypto-friendly stance by the SEC. Since the current administration took office, the SEC has demonstrated an openness to the crypto industry through public crypto roundtables and the dismissal of several lawsuits against crypto firms. The next roundtable, scheduled for Friday, will focus on crypto custody.

Under the leadership of former SEC Chair Gary Gensler, the agency approved the listing of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July, following a significant court ruling brought by Grayscale. This series of events underscores the evolving regulatory landscape for cryptocurrencies, with the SEC taking a more measured approach to evaluating new proposals. The delay in decisions for Polkadot and Hedera ETFs suggests that the agency is carefully considering the implications of these new financial instruments, potentially setting a precedent for future crypto-related filings.