US Securities and Stock Exchange Commission (SEC), Grayscale’s Litecoin $108.8 Trust demanded public comments on the proposal of making it a product traded on the stock market. The proposal was announced by taking into account the 19b-4 applications submitted by Nyse Arca. Comments are expected to be conveyed within 21 days after the publication of the Federal Register.
Applications and Evaluation Process
Nyse Arca’s previous document includes Grayscale’s Litecoin Trust as well as solana Trust applications. Considering the comments to be received and the risk elements in the market, the Commission may go to approval, reject or make additional evaluation. In this process, investor protection and existing regulations will be taken as basis.
In the process of BTC and ETH ETF, these public comments were collected before approval. SEC had shared risks and met with potential exporters to isolate these risks. This is part of the normal ETF approval process and Litecoin, when it looks like Ether, may say that there is a possibility of approval this year.
Market developments and other products
Various organizations in recent weeks, dogecoin 
$0.26485 And other alternatives have increased their applications for products based on crypto assets. Grayscale’s efforts to transform XRP Trress in a similar way draw attention. In addition, the company’s Dogecoin Trüst has started to be presented to corporate investors with a daily subscription.
SEC, Spot Bitcoin in January 2024 
$98,847.0 He allowed investment products, then Ethereum 
$2,852.6 By giving approval to fundamental products, he gave signals of flexibility in the regulation approach in the crypto asset sector. In this context, Grayscale’s application is considered to be able to direct future product applications.
The final assessment of SEC based on public comments will be able to reference in the process of organizing crypto assets in the market. Investors state that the process is important in terms of risk management and market stability.
The Commission said that the changes in the task and the crypto task force, which was founded under the leadership of Hester Peirce, may affect the regulations in digital asset classification and registration processes.
These developments may prepare the ground for increasing product diversity in digital asset markets and the emergence of new investment opportunities. Market actors think that the result of the SEC may be a guide in evaluating similar applications in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
