According to Golden Finance, BlackRock, the world's largest asset management company, mentioned the possibility of Bitcoin being classified as a security in the latest revised application for a spot Bitcoin ETF submitted to the U.S. Securities and Exchange Commission (SEC) on Monday. The new document updates the following details: If the U.S. Securities and Exchange Commission or state securities regulators take any enforcement action claiming that Bitcoin is a security, or the court makes such a ruling, it is expected to have a direct and significant adverse impact on the trading value of Bitcoin and spot Bitcoin ETF shares.
The document added that if a crypto asset is determined or asserted to be a security, it would likely be difficult or impossible to trade, clear, or custody in the United States through the same channels used by non-security crypto assets, which, in addition to having a significant adverse impact on the trading value of the crypto asset, could also seriously affect its liquidity and the ability of market participants to convert crypto assets into U.S. dollars.
Business litigation attorney Joe Carlasare said the update to BlackRock's S-1 filing was interesting. It looked silly, but it was clear the SEC wanted to use that wording in the filing.
