The market thinks that the SEC is putting up road blocks to get the exchanges to register with them (currently, the only license needed to operate a US-based exchange is a money-transmitter license). The exchanges don’t want to register with the SEC, because according to them - they aren’t selling securities.
Thus - the game of spot ETF.
Grayscale isn’t rushing either, because they are farming management fees.
Only ones losing is “investors”. The ones that the SEC suppose to protect.
Really? You can't think of any significant investor risk that the SEC might have identified here?
The SEC's response here is actually very even handed: they agree that there are advantages to a spot ETF for Bitcoin on a regulated exchange. The ruling observes that the presence of advantages is not sufficient: there must be proof that the rule change would not enable "fraudulent and manipulative acts and practices." They've also laid out how that proof might be obtained in the future: through a "surveillance-sharing agreement" that ensures transparency concerning the underlying assets.
This is law, not an undergraduate philosophy of logic class. "Proof" in these contexts means providing supporting or contradictory evidence; the SEC is stating that a company that wishes to offer a spot Bitcoin ETF must provide sufficient evidence that contradicts the other evidence that Bitcoin's market is susceptible to fraud and manipulation.
Edit: The SEC lays out some of this evidence on pages 22ff.
And all the metals markets have massive indictments and settlements about how they were full of fraud and manipulation. Where the only difference is that this all came out after spot metals ETFs were approved.
That’s a stretch, there have been many indictments and settlements from the state - including multiple governments in the US and multiple agencies of the Federal government on things that affect the crypto markets, including regarding Tether, and including participants that will affect the price of bitcoin.
The SEC is gatekeeping this specific market based on an accidental and optional administrative purview that should be corrected.
Thus - the game of spot ETF.
Grayscale isn’t rushing either, because they are farming management fees.
Only ones losing is “investors”. The ones that the SEC suppose to protect.