The Thai Securities and Exchange Commission (SEC) has proposed new regulations that would allow mutual and private funds to invest in digital assets in an effort to align with international developments and address growing interest from institutional investors.

A draft proposal, published on Wednesday, is seeking public feedback on revisions to the criteria for funds investing in digital assets.

The SEC is proposing to allow securities companies and asset management firms to offer services to large investors interested in diversifying into crypto-related products, such as exchange-traded funds. The regulator aims to align with international developments in digital assets and create more opportunities for investors to diversify their portfolios under expert management, it said.

It follows a surge in international interest and demand for US-listed Bitcoin and Ethereum ETFs, which were greenlit for trading in January and May, respectively.

The regulator noted that while Thai investors could already access crypto ETFs abroad, the current framework for mutual funds, which has been in place since 2015, has not kept pace with digital asset investing changes overseas.

“The SEC Office sees fit to adjust the criteria for accepting investment in digital assets to be consistent with international development,” a rough translation of the proposal reads.

Proposed rules would differentiate between high-risk assets, such as Bitcoin, and stablecoins, like Tether, designed to maintain a steady value.

Thailand’s SEC also emphasized the need for fund managers to exercise “fiduciary duty in selecting appropriate investment channels” and to manage associated risks.

The draft outlines limits on digital asset exposure for various fund types. Retail mutual funds would be restricted to a 15% allocation in crypto investments, while more sophisticated funds for institutional and ultra-high-net-worth investors would face no cap on exposure, though they must diversify to manage risk.

The SEC’s proposal also includes guidelines for the temporary holding of assets such as Bitcoin or Ethereum, capping the holding period to five business days for trading purposes. “Funds may need to hold crypto assets to buy, sell, or exchange digital assets,” the SEC said.

Public comments on the proposal will be accepted until November 8, with final regulations expected next year.

One of crypto’s most prominent advocates in Congress, House Majority Whip Tom Emmer (R-MN), has big plans for the industry should Republicans gain control of all branches of federal government in November.

However, he also appears convinced that cryptocurrency regulation is coming to the United States regardless of how the election shakes out.

“Regardless of the outcome, I expect you to see digital asset legislation start to move in both bodies,” Emmer told Decrypt at the Messar Mainnet conference in New York this week. “I think it is ‘when,’ not ‘if,’ regardless of who’s in charge.”

The third-highest-ranking House Republican ascribes much credit for this rosy outlook to recent changes in tune on both sides of the aisle in Congress. This spring, a substantial number of Democrats, including Senate Majority Leader Chuck Schumer, joined Republicans to vote to overturn an anti-crypto banking rule. Days later, 71 Democrats including Nancy Pelosi voted to pass FIT21, a key crypto market structure bill. 

Just last week, Emmer’s most senior adversary on the House Financial Services Committee, Maxine Waters (D-CA), told Punchbowl News that “crypto is inevitable.” Waters, for context, was a steadfast opponent of bills like FIT21 just months ago.

“That’s a momentous statement by Maxine,” Emmer said.

Why have so many Democrats changed their tune on crypto this year? Emmer thinks it comes down to electoral politics, and realizing that younger voters may be casting a ballot with crypto in mind.

“They saw that there’s this voting bloc, age 18 to 40, and [for] maybe one out of five of them… this is the issue they’re going to be voting on,” the congressman said. 

While Emmer is now confident that crypto legislation is more or less inevitable, he maintains that Republican “trifecta” control of the House, the Senate, and the White House in 2025 would likely bring those laws into effect more swiftly than a Democratic-controlled government might. 

If the Majority Whip was operating in such a dream scenario, he said he would prioritize three specific types of crypto-related bills for passage into law: a market structure framework like FIT21, his bill outlawing the creation of an American central bank digital currency (CBDC), and a bill to facilitate the creation of dollar-backed stablecoins anywhere in the world, so long as they meet certain criteria enforced by the U.S. Treasury Department.

Emmer thinks these laws, if enacted, would go a long way toward creating solid footing for American crypto firms and projects currently worried about regulatory uncertainty. The congressman balked, though, at the notion of going much further than such legislation.

“I have Republican colleagues in the Senate who [think] we’ve got to create a new regulatory department just to deal with crypto,” he said. “Be careful what you wish for. You do not want that.”

Edited by Andrew Hayward

The U.S. Securities and Exchange Commission has postponed its decision on a proposed rule change by Nasdaq’s International Securities Exchange to allow the listing and trading of options on BlackRock’s iShares Ethereum Trust (ETHA). 

Initially expected by Sept. 26, the decision has now been delayed until Nov. 10, giving the SEC additional time to evaluate the proposal’s potential impact on market stability.

The SEC’s final decision on Ethereum options could further integrate the cryptocurrency into traditional financial markets. Some argue that options for crypto ETFs could inject another wave of liquidity and spur bullish market behavior.

If approved, the options would follow the same regulatory framework as other ETF-linked derivatives, offering investors new ways to hedge or speculate on Ethereum’s price movements.

Under Section 19(b)(2) of the Securities Exchange Act, the regulator can delay its ruling for up to 90 days, allowing a deeper evaluation of market stability and risk.

The proposal, submitted on July 22, aims to amend existing rules to enable options trading on BlackRock’s iShares Ethereum Trust, which holds Ethereum managed by Coinbase and cash reserves by The Bank of New York Mellon. 

The trust is structured as a passive investment vehicle, focusing solely on providing exposure to Ethereum without engaging in staking or proof-of-stake validation activities.

This decision comes on the heels of a similar approval on Monday when the SEC greenlit options trading on BlackRock’s iShares Bitcoin Trust (IBIT). The approval followed several amendments to address concerns over market manipulation and excessive risk-taking.

In a related development, the SEC has also postponed its ruling on a separate proposal by NYSE American LLC to list and trade options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust. 

While the SEC ponders its decision on Ethereum options, the Ethereum ETF market has wobbled. Ethereum ETFs saw their largest net outflows since July, with over $79 million on Monday. 

The exodus was led by Grayscale’s spot Ether ETF (ETHE), which recorded a massive $80.6 million in single-day withdrawals—the largest since the spot Ether ETFs launched earlier this year.

Edited by Sebastian Sinclair