U.S. Securities and Exchange Commission (SEC) revealed that it has rejected the proposal of Bitcoin ETF that was sent by the Winklevoss Twins, blog post news. The price of Bitcoin dipped below the $8,000 mark, CCN reported.
The application was supposedly examined by the SEC for the 2nd time after Gemini founders Cameron and also Tyler Winklevoss appealed. In fact, for the second evaluation, SEC started a round of public comment. Previously, on March 10, 2017 the first application was denied.
The parts of the application that was highlighted as problematic in the first testimonial were changed. According to CCN record, SEC regulators dealt with the modified application as new one (afresh).
Why was ETF rejected?
In 2017, the very first application submitted to the SEC was the Bats Exchange ETF, with the ticker sign BXZ. The SEC supposedly followed Exchange Act Section 6( b)( 5) when they were taking the choice of whether to accept it or not.
The points which were thought about for BXZ ETF includes whether the exchange can “avoid deceptive and manipulative acts and methods” and “to shield capitalists and the general public passion.” Regulatory authorities also launched an investigation in May to examine whether bitcoin price movement was manipulated or not.
Inning accordance with SEC, bitcoin did refrain anything regarding control and the modern technology did not supply reliable devices to prevent money laundering and scams.
After the very first rejection, the new application mentioned, “The geographically diverse and continuous nature of bitcoin trading makes it difficult and also excessively pricey to adjust the price of bitcoin.” Consequently, the bitcoin market “usually is less at risk to manipulation compared to the equity, set revenue, as well as asset futures markets.”
Candidates suggested that SEC depended various other ETFs’ monitoring arrangements, which were approved in the past. However, SEC did not agree with it. Inning accordance with SEC, “surveillance-sharing agreement” is a necessary for safety and security versus fraudulence, adjustment as well as loan laundering.
Nonetheless, SEC in a confident tone stated that bitcoin market laws remain in the very early stages as well as they are reportedly keeping a watch on the acquired markets as well as their popularity. They have additionally stated that SEC is open to additional changed application in future that supports the surveillance arrangement.