The Commission on securities and exchange Commission (SEC) on Thursday rejected the proposal of the Winklevoss brothers to create a bitcoin ETF on a regulated exchange in the United States, depriving the hopes of many investors. It is noteworthy, however, that this solution does not agree not only cryptocurrency enthusiasts, and members of the SEC.
In its official statement published on the website of the Agency, the Commissioner of the SEC Sly M. pierce claims that the officials not only made the mistake of denying the Winklevoss brothers, but he exceeded his authority in regulating the cryptocurrency market:
“The historic mission of the Commission, and must remain, providing investors with the necessary information to make sound investment decisions. Compliance with the rules of the exchange ensures transparency in the market and prevent manipulation of prices, because the participants interact with each other. The Commission exceeds its authority when, instead of performing their direct duties, focuses on the product listing which plans to hold exchange”.
Pierce boldly expresses his opinion, as backed by Donald trump, who appointed her to a position in his administration. Translation of Crafty in the new office will take place in August.
“Bitcoin is a new phenomenon, and its viability and prospects is unclear. It can be successful and can fail. However, the Commission does not have sufficient capacity for estimating the probability of a particular outcome for Bitcoin or any other asset.”
Next, pierce claims that the concern of the SEC about Bitcoin is not justified. Manipulation of the market was affected and other exchange-traded products (ETP), which the Agency approved.
The decision of the SEC will only hurt investors, not to protect them, as it denies access to the emerging asset class on a regulated market. The development of the cryptocurrency in an institutional asset is also questionable.
“If we approve of the bitcoin ETF, investors could decide to buy or not to buy. Actions of the Commission deprives them of choice. I do not recognize the position of “Butler, who slams the door on innovation” — a role that is very different (and, one might even say incompatible) with our mission to protect investors, foster capital formation and promote fair, orderly and efficient markets,” Pearce said in conclusion: “Consequently, I do not agree”.