SEC Delays Ruling on Bitcoin ETF
Well I have a bit of bad news... U.S. regulators have once again delayed their decision on whether to approve a Bitcoin ETF.
The Securities and Exchange Commission (SEC) said in a Wednesday regulatory filing that it will seek more public comment on a proposal to list a product on Cboe. I'm a bit disappointed to hear this news and actually surprised because the public has adopted crypto in a major way this year! However, it’s not the first time this year that the SEC has delayed giving an answer to the legions of crypto fan and everyday advocates as we all are pushing for a way to trade the largest cryptocurrency BTC in an exchange-traded fund format.
Crypto enthusiasts and my self included have long been frustrated by the agency’s reluctance to sign-off on a Bitcoin ETF, a product that could catapult the world’s most valuable digital token into the mainstream among institutional investors. It would bring more legitimacy to the space and would show that regulators are finally welcoming us into their markets with open arms, but for now we are just getting the cold shoulder.
There were predictions earlier this year and I wrote a few articles speculating that the regulator would be more receptive under SEC Chair Gary Gensler, who once taught classes on digital assets at the MIT. However, since he took the reins in April, the agency has continued to express concerns that crypto exchanges lack oversight. He has even laid out fresh warnings about the risks of mutual funds investing in Bitcoin futures which is wrong message.
My only hope is as part of Wednesday’s announcement, the SEC asked the public to weigh in on aspects of the Cboe proposal, which seeks approval of a VanEck Associates Corp. ETF. The SEC set deadlines into July and perhaps even August for people to respond. Here are some of the agency’s key questions:
- Whether the trust and shares associated with the ETF would be susceptible to manipulation?
- Whether Cboe’s plan is set up to prevent fraud and manipulation?- How transparent is Bitcoin?
- Has regulation of the Bitcoin market changed substantially in the past five years?
- What views do commentators have on the size and regulation of CME’s Bitcoin futures contracts?
WhatI'm interested is to see how this community would answer these same question!
Posted Using LeoFinance Beta