On August 23rd, SEC played an embarrassing number on crypto investors who had hoped that it would approve ETF applications presented to it. The nine applications were forwarded by GraniteShares, ProShares, and Direxion.
SEC denied them, putting the prospects of cryptos ever being accepted as fiat on the rocks. SEC mentioned issues of price manipulation and BTC’s small market size as one of the reasons for turning down the proposals. But the moment of sadness wasn’t to last, as SEC later decided to re-open the books on the 9 applications for reconsideration.
Denial Verdict To Be Stayed
That means that the denials of August 23rd are to be “stayed” pending the final verdict that’s to come after the review. According to Hester Pierce, a SEC commissioner, the review will play out in the scope of Rule 431 of SEC’s Rules of Practice.
Pierce is a crypto proponent and had earlier on criticized the commission’s decision to turn down an ETF proposal presented by the Winklevoss twins. She has even earned a nickname, “CryptoMom,” and is widely seen as crypto’s “inside woman.”
Expounding on the decision for the review, Pierce said that the commission may sometimes delegate tasks to the staff, and that in such scenarios, the staffers in question act on behalf of the commission. Therefore, the decisions made by the staff may be set for review by the commission at will.
Market Response
With such positive news, the crypto markets have appeared to respond very positively, with Bitcoin surging up by $150 within the first few minutes of the news breaking. Other cryptos have also responded with gains almost within the same margins as Bitcoin. At the moment, Bitcoin appears to have found a solid stand within the $6,500 range.
The current positive market development is surely a good sign, but there are few who think the surge is still not enough to bring the crypto markets back to glory. Well, we can only wait and see.
