The SEC continues reviews on the Bitcoin ETF
There is a new date for the deadline of the decision of the SEC by the end of October 2018, after communicating with the public about the proposed rule changes, that the technology brings forth.
In the past, the SEC has had a few drawbacks on the decisions that needed to be taken on the Bitcoin ETF approvals. One of these was in August of 2018 in which the SEC rejected 9 Bitcoin ETF’s that was filed by ProShares, GraniteShares, Direxion. These proposals were submitted around the fifth of January 2018. According to sources the Bitcoin ETFs from GraniteShares were supposed to be listed on CBOE BZX which is an Exchange for crypto assets, while NYSE was ready to put ProShares on the Arca Exchange.
The SEC has been very lazy on decisions about a Bitcoin ETF, rejecting all proposals put forth based on inadequate research, market manipulation, and practices. In a report the agency wrote that:
“The Commission is disapproving this proposed rule changes because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular, the requirement that a national security exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
After the rejection of the Bitcoin ETF proposal, the SEC Commissioner Hester Peirce interjected into these concerns and tried to find a solution. Saying that the agency will be looking deep into these matters. Yesterday there was some disapproval of the SRO rules that are related to the Bitcoin ETFs and are still pending their reviews.
Information seeking about the Blockchain and Bitcoin
Last week on October the 4th there was a lot of Bitcoin EFT proposal amendments, as the proposed rules are to change the list and trade shares of the Bitcoin ETFs. The amendments can also be affected by the ETF proposals that are coming from ProShares.
This had led the SEC to present a deadline of October the 26th 2018 for seeking public inputs and comments on the Bitcoin ETF proposals. The rule changes will be reviewed by the SEC if it all gets approved.
There were also reports found in a document that was published, that the SEC has been pending reviews from the agency. It has also put in effect that the disapproval of the proposed rule changes shall remain in effect, awaiting the Commission’s reviews on the ETFs. This will also be true for the regular ProShares and Direxion Bitcoin ETFs.
In an Announcement, the SEC also stated that by October 26th, 2018, any party that either is in favor of or is in opposition to the rules should file a statement before the deadline.
“Accordingly, IT IS ORDERED, pursuant to Commission Rules of Practice 431, that by October 26, 2018, any party or other persons may file a statement in support of, or in opposition to, the action made pursuant to delegated authorities.”
There is still uncertainty about the Bitcoin ETF that is coming up out of the different opinions of agency members. This will be the same for the CBOE Bitcoin ETF that was filed by SolidX Van-Eck Turstcand the SEC is trying to receive more comments from the Public before making any decisions.
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