SEC Delays Decision on Bitwise’s Spot Dogecoin ETF
In a move that’s left many in the cryptocurrency community both frustrated and unsurprised, the U.S. Securities and Exchange Commission (SEC) has once again deferred its decision on the proposed Spot Dogecoin ETF by Bitwise Asset Management. The SEC announced on September 9 that it would take a “longer period” to review the application, pushing the deadline to November. This delay marks yet another chapter in the ongoing saga of regulatory scrutiny faced by crypto-related financial products.
The SEC’s Reluctance
The SEC’s hesitation to approve crypto ETFs is well-documented. It’s not the first time the agency has exercised caution, particularly with digital assets that are known for their volatility. Dogecoin, the meme-inspired cryptocurrency that started as a joke but gained significant traction and popularity, is no exception. The SEC’s decision to delay is rooted in its dedication to investor protection, market integrity, and concerns about potential manipulation in the underlying market.
Bitwise’s Ambitions
Bitwise, a San Francisco-based asset management firm, is no stranger to the challenges of navigating the complex regulatory landscape. The company has been at the forefront of efforts to bring crypto ETFs to market, with its applications for Bitcoin and Ethereum ETFs previously facing similar setbacks. Bitwise has continuously tweaked its proposals, attempting to address the SEC’s concerns and build a case for why a Dogecoin ETF could benefit investors by providing a safer, regulated means of gaining exposure to the cryptocurrency.
Despite the latest delay, Bitwise remains optimistic. The firm believes that a regulated Dogecoin ETF could pave the way for broader acceptance of cryptocurrencies and serve as a bridge for traditional investors looking to enter the digital asset space without having to directly purchase and store the coins themselves.
Industry Reactions
The cryptocurrency industry is no stranger to regulatory delays, and reactions have been mixed. On one hand, there are those who view the SEC’s caution as a necessary step in ensuring that the market remains fair and secure. On the other hand, some crypto enthusiasts argue that the SEC’s stringent processes stifle innovation and prevent the U.S. from leading in the rapidly evolving digital asset sector.
Jake Chervinsky, a prominent voice in the crypto legal space, has often highlighted the SEC’s mandate to protect investors, but he also points out the importance of regulatory clarity and innovation. “While the SEC’s caution is understandable, it’s crucial that the U.S. doesn’t fall behind in the global race for crypto innovation,” Chervinsky noted on social media.
The Broader Impact
The delay could have broader implications for the crypto market. An approved Dogecoin ETF would likely lead to increased institutional investment, providing greater liquidity and potentially stabilizing the notoriously volatile asset. It could also set a precedent for other cryptocurrencies, opening the door for a range of crypto ETFs that could appeal to different investor interests and risk appetites.
However, delays also mean that investors must continue to rely on existing, often less regulated, methods of gaining exposure to Dogecoin. This scenario raises concerns about market manipulation and the lack of investor protections currently available in the unregulated crypto markets.
Looking Ahead
As the new deadline looms in November, all eyes will be on the SEC and its forthcoming decision. The extended review period suggests that the SEC is carefully considering the implications of approving a Dogecoin ETF, weighing the potential risks against the benefits of increased market participation and innovation.
For Bitwise and other firms vying for crypto ETF approval, the path forward requires patience, persistence, and perhaps further adjustments to their proposals. The SEC’s decision will also likely be influenced by the evolving regulatory environment, including new legislation and guidance that could emerge as the crypto industry continues to mature.
In the meantime, the crypto community will be watching closely, hopeful that the SEC’s eventual decision will usher in a new era of mainstream acceptance and integration for digital assets. Whether or not the Spot Dogecoin ETF gets the green light, the ongoing dialogue between regulators and the crypto industry will be crucial in shaping the future of digital finance.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
