Commission United States securities and exchange Commission rejected the application for a bitcoin ETF of the Winklevoss brothers

Commission United States securities and exchange Commission rejected the application for a bitcoin ETF of the Winklevoss brothers

Commission United States securities and exchange Commission (SEC) rejected the application for a bitcoin ETF from the brothers Tyler and Cameron winklevoss the.

For the first time, Bats BZX Exchange, Inc. (BZX) has applied for a bitcoin ETF in 2016, but the SEC rejected it in February 2017 because of the unregulated nature of the bitcoin market:

When the spot market is not regulated – there should be a significant regulated markets of derivatives related to the underlying asset in which the Exchange may enter into an agreement on sharing data.

After the failure, the group filed a “timely motion requesting that the Commission reconsider its decision”.

The SEC issued its decision Thursday, July 26, and denied the motion. In the petition the Winklevoss claimed that the cryptocurrency market is “uniquely resistant to manipulation,” however, the Commission “does not agree with such statements”.

The SEC also emphasized that their denial of the petition did not depend on whether cryptocurrency or blockchain technology “is a useful and valuable innovation”.

Rather, the Commission rejects this request because … BZX has not fulfilled its obligations in accordance with the exchange Act, to demonstrate that its proposal is consistent with the requirements of the Law on exchange… in particular the requirement that the rules were designed to prevent fraudulent and manipulative acts and practices.

The Commission expressed its concern about the fact that a significant part of trade bitcoins happens in “unregulated exchanges outside the United States,” in addition to doubt in relation to low liquidity.

Read also – 10 August, the price of bitcoin will grow and will rise to 65 thousand dollars

Despite the fact that the Commission received a series of requests from completely different organizations, none of them have not yet been adopted. The most promising is the application of the CBOE, the decision on which must be adopted by August 10.

News tags
Let's Disqus