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Nasdaq moves to list 21Shares’ Polkadot Trust, files rule change with SEC

Nasdaq moves to list 21Shares’ Polkadot Trust, files rule change with SEC

  • 18.03.2025 17:38
  • msn.com
  • Keywords: Regulatory Pressure

Nasdaq filed with the SEC to list 21Shares' Polkadot Trust, enabling investors to gain DOT exposure without direct ownership. Crypto leaders are pushing back against the SEC's enforcement actions, seeking accountability and regulatory clarity under Trump's policies.

Coinbase ProductsNDAQsentiment_satisfiedCOINsentiment_dissatisfiedCGEMYsentiment_neutral

Estimated market influence

Nasdaq

Nasdaq

Positivesentiment_satisfied
Analyst rating: Buy

Nasdaq is facilitating access to Polkadot through the trust.

21Shares US LLC

Neutralsentiment_neutral
Analyst rating: N/A

Sponsor of the Polkadot Trust

CSC Delaware Trust Company

Neutralsentiment_neutral
Analyst rating: N/A

Trustee of the Polkadot Trust

Coinbase Custody Trust Company

Positivesentiment_satisfied
Analyst rating: N/A

Provides secure storage for Polkadot assets.

CF Benchmarks Ltd.

Neutralsentiment_neutral
Analyst rating: N/A

Calculates the reference rate for DOT's market price.

Coinbase

Coinbase

Negativesentiment_dissatisfied
Analyst rating: Buy

Facing regulatory challenges from SEC.

Ripple

Negativesentiment_dissatisfied
Analyst rating: N/A

Involved in legal battles with SEC.

Gemini

Gemini

Neutralsentiment_neutral
Analyst rating: Buy

Led by Cameron and Tyler Winklevoss, involved in crypto advocacy.

Context

Analysis of Nasdaq’s Polkadot Trust Listing and Crypto Industry Pushback Against SEC

Nasdaq’s Move to List 21Shares’ Polkadot Trust

  • Key Filing: Nasdaq filed a rule change application with the SEC under Section 19(b)(1) of the Securities Exchange Act of 1934 to classify shares as commodity-based securities.
  • Trust Structure:
    • Sponsor: 21Shares US LLC
    • Trustee: CSC Delaware Trust Company
    • Custodian: Coinbase Custody Trust Company
    • NAV Calculation: Daily at 4:00 p.m. ET using the CME CF Polkadot-Dollar Reference Rate – New York Variant.
  • Trust Features:
    • No leverage, derivatives, or yield-generating activities.
    • Excludes airdropped or forked tokens.
    • Shares created and redeemed in cash through Authorized Participants.
  • Regulatory Status: Not classified as an investment company under the Investment Company Act of 1940; Polkadot (DOT) is not subject to CFTC regulations.

Market Implications

  • Institutional Access: Allows traditional investors to gain crypto exposure without direct ownership, potentially increasing institutional adoption.
  • Operational Model: Cash-based transactions reduce counterparty risks but may limit returns compared to other investment vehicles.
  • Competitive Landscape: Positions Nasdaq as a leader in offering crypto-related financial products, while 21Shares strengthens its position in the growing ETP (Exchange-Traded Product) market.

Crypto Industry Pushback Against SEC

  • Key Players: Coinbase, Ripple, and Gemini are leading the charge against SEC enforcement tactics.
  • Strategic Shift: Crypto firms are challenging past actions, targeting former SEC employees, and seeking regulatory clarity under the Trump administration.
  • Political Angle: Republican efforts to redefine SEC jurisdiction over digital assets signal a potential shift in regulatory oversight.

Market and Regulatory Dynamics

  • Regulatory Landscape: The industry’s pushback highlights tensions between innovation and regulation, with crypto firms advocating for balanced oversight.
  • Investor Protection vs. Market Freedom: Critics argue that excessive enforcement could stifle growth, while supporters emphasize the need for accountability.
  • Long-Term Effects: A more favorable regulatory environment may encourage further institutional adoption but risks undermining investor protections if overreach is perceived.

Competitive Considerations

  • Industry Unity: While major players like Coinbase and Ripple lead the charge, internal criticism suggests potential reputational risks if the focus shifts too heavily to personal attacks on regulators.
  • Global Impact: The U.S. regulatory approach could set a precedent for international oversight of digital assets, influencing global market dynamics.

Conclusion

Nasdaq’s proposed listing of the Polkadot Trust underscores the growing convergence of traditional finance and cryptocurrency, while the crypto industry’s pushback against the SEC highlights the delicate balance between regulation and innovation. Both developments have significant implications for market participants, regulators, and the future trajectory of digital asset adoption.