UNITED STATE Securities and also Exchange Commission (SEC) revealed that it has turned down the proposition of Bitcoin ETF that was sent by the Winklevoss Twins, blog post news. The rate of Bitcoin dipped below the $8,000 mark, CCN reported.
The application was supposedly assessed by the SEC for the 2nd time after Gemini co-founders Cameron as well as Tyler Winklevoss appealed. As a matter of fact, for the second evaluation, SEC began a round of public remark. Previously, on March 10, 2017 the preliminary application was declined.
The parts of the application that was highlighted as problematic in the first evaluation were customized. According to CCN report, SEC regulators dealt with the customized application as new one (de novo).
Why was ETF declined?
In 2017, the first application submitted to the SEC was the Bats Exchange ETF, with the ticker sign BXZ. The SEC reportedly followed Exchange Act Area 6( b)( 5) when they were taking the choice of whether to approve it or not.
The factors which were considered for BXZ ETF includes whether the exchange can “stop deceitful and manipulative acts as well as methods” and “to shield financiers as well as the public interest.” Regulatory authorities also launched an investigation in May to examine whether bitcoin price activity was manipulated or not.
According to SEC, bitcoin did refrain from doing anything regarding adjustment and the technology did not provide reliable tools to prevent loan laundering and also fraudulence.
After the first being rejected, the new application stated, “The geographically diverse and also constant nature of bitcoin trading makes it tough and prohibitively costly to manipulate the cost of bitcoin.” Therefore, the bitcoin market “normally is less vulnerable to adjustment compared to the equity, set earnings, as well as product futures markets.”
Applicants said that SEC depended various other ETFs’ monitoring agreements, which were accepted in the past. Nonetheless, SEC did not agree with it. According to SEC, “surveillance-sharing arrangement” is a required for safety and security versus scams, adjustment and money laundering.
Nonetheless, SEC in an enthusiastic tone specified that bitcoin market regulations remain in the early stages as well as they are apparently keeping a watch on the derivative markets and their appeal. They have also discussed that SEC is open to further changed application in future that sustains the surveillance arrangement.