SEC Rejects 9 Applications for Bitcoin-ETF License

August 24, 2018

The US Securities and Exchange Commission (SEC) has rejected 9 applications filed for licensing Bitcoin-ETF by three companies having issued three related orders this Wednesday, August 22.

As it was reported earlier, announcing decision on accepting two BTC-ETF applications by ProShares company together with NYSE Arca platform was appointed on August 23. However, the day before the SEC had rejected 9 similar applications with five of them lodged by Direxi in collaboration with NYSE Arca and two ones by GraniteShares.

“[The] 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 orders say.

They also note that the applications had no proofs that Bitcoin-futures possess significant share at the securities market. The authors of the messages also stated that the companies haven’t provided complete description for preventive measures against crypto derivatives crimes and for doing so the platforms have to grant the SEC shared access to the Bitcoin-related regulated market.

It is to be stressed that the current SEC stance is alike the one it voiced for the Winklevoss twins who used to apply for Bitcoin-ETF license as well:

“When the spot market is unregulated –– there must be significant, regulated derivatives markets related to the underlying asset with which the Exchange can enter into a surveillance-sharing agreement”.

In addition, the Commission put it in its latest statements that disapproving these applications does not imply denying value and innovational features of Bitcoin and blockchain in general.

Comments

Никто ещё не оставил комментариев. Желаете быть первым?