A bitcoin ETF may obtain automatic approval of the SEC as a result of the shutdown in the US

A bitcoin ETF may obtain automatic approval of the SEC as a result of the shutdown in the US

The Commission on securities and exchange Commission (SEC) must take a final decision on bitcoin ETF from VanEck, and SolidX 27 February 2019. However, due to the shutdown of the US government there is a possibility of automatic approval of the launch of the bitcoin Foundation.

A lawyer from the sphere of securities, Jake Chervinsky said that the shutdown of the government in the US could seriously affect the upcoming decision on the bitcoin ETF from VanEck, and SolidX.

In early December, 2018 SEC used the latest delay for the application to launch a publicly traded bitcoin Fund, the Bitcoin Trust filed by the company VanEck, SolidX BZX Exchange and the CBOE.

“February 27 is the final deadline for the approval or rejection of the application VanEck and SolidX. The SEC does not have the ability to extend the 240-day period from the date of registration of the application in the Federal Register. According to the Statute, the SEC strictly prohibits deferral in excess of 240 days… By law, this means that if the SEC won’t be able to make a final decision until February 27, the ETF will be automatically approved”.

However, Czerwinski said that the automatic approval of the ETF was “unlikely” because the SEC published on its website a notification stating that “despite the shutdown, the Agency still continues to work a limited number of staff”. The Commission added that they will “respond to emergency situations related to the integrity of the financial market and protection of investors.”

The SEC also published an operational plan for the duration of the shutdown. The document clarifies that the Agency will cease “consideration and approval of applications for registration in respect of new financial products”, which include bitcoin ETF.

Czerwinski believes that the Commission will do everything possible to prevent automatic approval of the controversial financial instruments such as bitcoin ETF.

In that case, if automatic approval for a bitcoin ETF will be, “it will not be a full warranty starting the tool, as it can be easily canceled.”

“When the shutdown is complete, the SEC may initiate the cancellation of this decision”.

The lawyer also commented on the pending approval of the Commission on trade commodity futures (CFTC) has started activities Bakkt.

“Unlike the SEC, the CFTC has no statutory deadline for a decision on the Bakkt. So the launch Bakkt just will not take place until the completion of the shutdown”.

News tags
Let's Disqus