SEC Meets CoinShares to Address Regulatory Hurdles for Cryptocurrency ETPs in the U.S.

On June 3rd, the U.S. Securities and Exchange Commission’s (SEC) Crypto Special Group convened with CoinShares International Limited and legal advisors Chapman & Cutler LLP to address regulatory complexities surrounding the launch of cryptocurrency exchange-traded products (ETPs) in the U.S. The dialogue focused on integrating a collateral mechanism within ETP frameworks, establishing robust standards for reviewing digital asset ETP rule change applications, and resolving cryptocurrency custody challenges. Additionally, the discussion covered the operational differences between in-kind versus cash creation and redemption processes, alongside evaluating the potential for registered investment companies to allocate capital into digital asset ETPs. CoinShares highlighted its extensive European footprint, managing assets exceeding $6 billion across 20 publicly traded ETPs, which encompass 13 digital currencies and 3 digital asset indexes, underscoring its expertise in the digital asset investment landscape.