OK SEC FTX’s proposal to change its swap model would set the stage for a spot bitcoin ETF to be listed. This was stated by Bloomberg analyst Eric Balciunas.

FTX’s proposal for a new swap model to the CFTC, if approved, could open the door to meet the SEC’s requirement for a federally regulated spot bitcoin mkt. What is this @SBF_FTX tweeted about y’day and @JSeyff wrote about today in the note. Confirmation is still long but worth watching.. pic.twitter.com/kZjUqnTGVj

— Eric Balchunas (@EricBalchunas) 24 May 2022

The expert cited a note from a colleague at the agency, James Seyffart, and a tweet from Sam Bankman-Fried, head of crypto derivatives exchange.

The latter announced work on the creation of a federally regulated bitcoin exchange. According to the FTX CEO, once implemented, the platform will be able to publish trading data that could meet the regulator’s criteria to prevent fraudulent or manipulative practices.

We are working to get a federally regulated spot crypto hub that can help support this! https://t.co/fhJd5BAlNC

— SBF (@SBF_FTX) 23 May 2022

Seiffart recalled that FTX’s idea of ​​reforming clearing organizations was to exclude FCM intermediaries from participating in trading. After approval, the company will be able to independently hold derivative collateral and offer leveraged contracts to clients.

Balciunas explained that the FTX initiative has brought but not guaranteed approval of a Bitcoin spot ETF. The expert believes the key here is SEC chairman Gary Gensler’s desire to be promoted to secretary of the treasury. To do this, the official wants to show the president the scope of the cryptocurrency market by the regulatory framework.

All these possible paths are long distances, Gen says. Probably the only thing that matters is Gensler’s desire to fully regulate crypto, show POTUS he’s done it, and win the job of Secretary of the Treasury. Until then, it’s hard to be too optimistic. Still, this FTX thing is interesting regardless

— Eric Balchunas (@EricBalchunas) 24 May 2022

Recall that in April, the SEC approved the Teucrium Bitcoin Futures ETF (BCFU) based on the Securities and Exchange Act of 1934.

Earlier, SEC chairman Gary Gensler said that for possible approval of such instruments, their key assets should be bitcoin futures. CME. He also talked about filing under the Investment Companies Act 1940.

Registration of the BCFU could potentially open the door to a Bitcoin ETF.

The Investment Company Act of 1940 also complies with Grayscale Investments’ application to register the GBTC Trust as a Bitcoin Spot ETF. In December 2021, the company admitted that the Commission had violated the law in approving a futures-based instrument for the first cryptocurrency.

A final decision on Grayscale’s claim is expected on July 6. According to Bloomberg analyst Eric Balciunas, 95% of stakeholders support the launch of a financial instrument.

The Commission has yet to approve any application to launch a spot bitcoin ETF. At the same time, the agency authorized the launch of exchange-traded funds based on futures for the first cryptocurrency from VanEck, Valkyrie Investments, and ProShares.