- BlackRock requests SEC meeting on crypto rules and tokenization.
- Quantum threat flagged in BlackRock’s updated Bitcoin ETF filing.
- BlackRock eyes staking, tokenization in digital asset strategy update.
BlackRock, the world’s largest asset management firm, has asked the U.S. Securities and Exchange Commission (SEC) for a meeting. The firm sought to meet with the SEC’s Crypto Task Force. BlackRock is looking to receive feedback on major issues in crypto regulation. The list includes staking opportunities within ETPs, security tokenization, approval mechanisms for crypto ETPs, and limit imposition on crypto options.
BlackRock Flags Quantum Computing Threat in Bitcoin ETF Update
The company filed amended paperwork for its Ethereum fund, ETHA. Now, in-kind creation and redemption are part of the updated filing. With this provision, users can now exchange assets without having to pay cash. However, approval from the SEC is still required. BlackRock submitted a new version of its S-1 form for the Bitcoin fund, IBIT. The update mentions possible threats from quantum computing that may affect Bitcoin’s crypto protocols.
Importantly, BlackRock is set to steer the formation of crypto regulation in the country. Recently, the SEC’s attitude to digital assets is changing. Previously, the SEC was conservative when it comes to digital assets. SEC Chair Gary Gensler regularly warned that the crypto sector had rampant fraud and manipulation. In addition, he took enforcement cases against high profile crypto companies. Most of the cases were dropped after he resigned from the SEC this year.
Paul Atkins has recently replaced the SEC head. He has become more positive about crypto lately. Atkins believes that digital assets can produce many positive results. He said that he desires to work with lawmakers to develop better guidelines for the industry. It is Commissioner Hester Peirce who is leading the SEC’s Crypto Task Force now. The task force will on Monday hold its fourth meeting in regard to the issue of tokenization.
BlackRock to Reveal Digital Asset Strategy in Upcoming SEC Meeting
In the upcoming meeting, the company is going to provide its specific plans regarding digital assets. BlackRock currently sells many products related to cryptocurrencies. The company also provides iShares Bitcoin Trust, iShares Ethereum Trust, and the BlackRock USD Institutional Digital Liquidity Fund. In addition, BlackRock is going to explain the scope of possible staking within the existing rules profile. Crypto holders may secure blockchain networks and win rewards by following the principle of staking.
Tokenization of financial instruments is one of the areas of interest at BlackRock. This refers to the process of transforming traditional means of finance, such as stocks or bonds, into digital tokens for trading on blockchain platforms. By turning them into tokens, assets can be traded faster, traded more efficiently, and 24/7.
On the other hand, the company is currently managing a tokenized fund aimed at trading U.S. government debt. The tokenized fund available from BlackRock, BUIDL, currently trades at a value of $2.9 billion. Other tokenized security funds are accredited by corporations like Franklin Templeton.
BlackRock hopes it will help define rules for crypto ETPs. Central issues are the introduction of limits on buying and selling positions, as well as guarantees against sufficient volume of trading. To promote a safer, more reliable exchange of digital assets, this action is currently being implemented.
Other companies are also doing so in a similar vein. Robinhood is developing a blockchain where European users can trade U.S. stocks through digital tokens.
Overall, from BlackRock’s proposal, it is clear that it is taking a hard line on shaping the crypto regulation. It is the company’s plan to collaborate with the SEC in establishing the guidelines that will support growth and put priority on the safety of the investor.
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