The Securities and Exchange Commission (SEC) can reconsider its refusal to launch nine bitcoin-ETFs. This was reported by the SEC Commissioner, Hester Peirce.
She explained that the Chairman and Commissioners delegate certain tasks to their staff. In this case, those who make independent decisions act on behalf of the Commission. However, SEC can still reconsider the decisions of subordinates, which will happen in the case of nine bitcoin-ETFs.
Yesterday's staff orders disapproving SRO rules related to a number of bitcoin ETFs are stayed pending Commission review. See, for example: https://t.co/Ky9Z8t1E4q
— Hester Peirce (@HesterPeirce) August 23, 2018
According to the media, a possible revision is also mentioned in the letter of Secretary SEC Brent Fields to the The New York Stock Exchange (NYSE) and Cboe Global Markets. Fields refers to the procedural rules by which the decision will remain in force until the Commission decides otherwise.
Hester Peirce herself earlier criticized the refusal to launch nine bitcoin-ETFs. The Commission issued this decision on August 22. Two applications were submitted to the regulator jointly from ProShares and NYSE Arca. Five more were filed by Direxion, and documents for opening two more funds came from the company GraniteShares.
The response to these applications said that company’s propositions failed to demonstrate compliance with the requirements of the Exchange Act Section 6(b)(5), particularly relating to the prevention of market manipulation.
WHY IS IT IMPORTANT?
- A new financial instrument should make the process of trading cryptocurrency more transparent. Until now, the watchdog has refused all submitted applications. At the same time sources in the SEC have stated several times that the regulator is close to approving a bitcoin-ETF and can make a positive decision by the end of the year.
- Meanwhile, any news about these funds affects the rate of сryptocurrency. Against the background chatter of the last SEC failure, the cost of bitcoin (EXANTE: Bitcoin) has dropped to $6,400.