Yesterday, a publication was made in one of my articles that was published yesterday if SEC is out to undermine cryptocurrency through it’s continuous rejection of bitcoin exchange traded funds submissions made by some organizations or delay in decisions in some?
It might be that this was read by them as they were able to take a decision on the applications for the first time before the due that which was August 23.
The 9 ETF’s applications are two are from Proshares in conjunction with New York Stock Exchange ETFs to be listed in NYSE ARCA, two from GraniteShares to be listed in CBOE and five from Direxion to be listed in NYSE ARCA.
In response to the rejection of the 9 applications from the three firms, SEC said:
“[T]he Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission’s 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 securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
The problem of manipulation of cryptocurrencies was one of the reasons why SEC rejected the two applications of Gemini Exchange owned by the WinkleVoss twins. In responsed particularly to the two applications from Proshares by stating that :
“Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.’ That failure is critical because, as explained below, the Exchange has failed to establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient, and therefore surveillance-sharing with a regulated market of significant size related to bitcoin is necessary.”
In conclusion said said that: “[The agency] emphasizes that its disapproval does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment.”
