According to Cointelegraph, on November 19th, the US Securities and Exchange Commission (SEC) is reviewing its last rejected Bitcoin exchange-traded fund (ETF) application submitted by Bitwise Asset Management and NYSE Arca. .
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The SEC said in a statement on November 18 that it will re-examine the ETF applications submitted by Bitwise Asset Management and the NYSE. The SEC had previously rejected the application on the grounds that it did not meet the necessary regulatory requirements.
In October, the US regulator said that the ETF proposal submitted by Bitwise and the Stock Exchange of the Stock Exchange was not in compliance with the legal requirements to prevent market manipulation or other illegal activities. The SEC wrote at the time:
“The committee does not approve this rule change proposal for the following reasons: NYSE Arca is unable to comply with the liability provisions set out in the Exchange Act and the Rules of Practice to prove that its proposal is in compliance with the Exchange Act. Section 6(b)(5) requires, in particular, that the proposal does not meet the requirements of the National Stock Exchange's 'Protection Against Fraud and Manipulation Acts and Practices' rule."
Market manipulation is still the biggest concern
One of the main concerns of the regulator when evaluating new commodity-based ETFs is to determine whether the underlying market is resistant to manipulation. In an order dismissing the Bitwise ETF application, members of the SEC wrote that when the 'false and/or non-economic data' was removed, the saying that Bitcoin's 'real' spot market was strong enough to withstand manipulation was simply untenable. ”
However, the regulator announced today that it is reviewing the proposal, so any entity or individual can submit a submission to support or oppose the action of the authority by December 18, 2019.
The SEC further stated that the directives previously rejected by the agency for Bitwise Asset Management and the ETF listing application submitted by the NYSE will continue to be valid until the SEC reviews it again.
The timetable for the first encrypted ETF approval is uncertain
Charles Lu, CEO of Findora, a private bookkeeping agreement, recently said that he was skeptical that he would be approved soon after talking about the realistic timetable for the first possible encrypted ETF:
“In order for the Bitcoin ETF proposal to be approved by the SEC, the applicant organization needs to prove that there is a real price discovery in the market, and there is no market manipulation. The SEC will require a monitoring sharing agreement with an important cryptocurrency exchange. Few foreign exchanges will agree to this request."
Many insiders seem to be cautiously optimistic about this. They believe that at some point, the encryption industry will get the coveted "big prize", but obviously it is not the time.