The landmark announcement of a spot Bitcoin exchange-traded fund (ETF) approval has significantly impacted the financial landscape.
While the market sentiment has been predominantly positive, a recent revelation shows that the US Government Accountability Office (GAO) had a few recommendations prior to the green light from the Securities and Exchange Commission (SEC).
According to a document published on December 15, 2023, and released on January 16, 2024, the US GAO made some key suggestions the SEC should implement to ensure effective regulatory control.
One of the recommendations required the top security agency to prepare a new workforce planning strategy that aligns with its preset strategic and performance goals for 2022 to 2026.
The non-government arm stated that this workforce planning initiative should be executed through the office of the Chief Human Capital Officer.
US GAO Recommendations to SEC Prior to Spot Bitcoin ETF Approval Revealed ↗ pic.twitter.com/rEzUzHbHvA
— AirdropAdventure 🏞 (@airdropadver) January 17, 2024
In addition, the US GAO proposed that the SEC mandate the Director of the Strategic Hub for Innovation and Financial Technology to document its policies and procedures that support its internal control measures.
Furthermore, the independent audit institution urged the SEC to ensure that the director formulates key performance goals and measures aimed at fostering a smooth regulatory atmosphere for the burgeoning industry.
So far, all three recommendations are marked ‘Open,’ indicating that none has been implemented since the introduction of a spot Bitcoin ETF on January 10.
Providing context for its findings, the GAO team highlighted several discoveries. Notably, it observed that the US SEC has actively recruited talent with expertise in blockchain-based digital assets.
The audit institution stated that the agency has 116 staff members working in the crypto space so far.
Despite this, the GAO noted a lack of a new workforce planning strategy to optimize their performance. It also discovered that the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) was responsible for coordinating the SEC oversight of emerging technology.
However, it noted a lack of documented policies, procedures, and performance goals, hindering its fulfillment of its role as a stand-alone department.
Nevertheless, the GAO acknowledged that the SEC has introduced new supervisory technology tools, including advanced data analytics and other techniques, to aid in both detecting and investigating potential illicit activities in the evolving financial space.
Jump on Spot Bitcoin ETF, Close Futures
After a protracted battle, the US SEC officially approved a spot Bitcoin ETF on January 10, 2024.
In its official release, the securities agency confirmed that it has authorized the launch of spot Bitcoin ETF services by various entities, including BlackRock, WisdomTree, VanEck, Ark 21Shares, Fidelity, Invesco Galaxy, Valkyrie, Grayscale, Bitwise, Hashdex, and Franklin Templeton.
VanEck has since decided to go all in on its spot Bitcoin ETF services. According to a post on X (formerly Twitter), the asset management firm announced the closure of its Bitcoin futures ETF following its successful spot Bitcoin ETF bid.
Now that our spot bitcoin ETF has been approved, we are closing our ETF that invested in bitcoin futures. https://t.co/pgf8NaKb4a
— VanEck (@vaneck_us) January 17, 2024
Explaining the decision to shut down its futures arm, VanEck cited low demand as a determinant.