The SEC has decided to re-examine the yesterday’s rejection of Bitcoin ETFs. This is really an interesting turnaround and the crypto community can breathe a sigh of relief.
Is There Light at The End of The Tunnel?
The U.S. Securities and Exchange Commission (SEC) has decided that exchange-traded funds (ETFs) are regulated by stock exchanges on the NYSE. The SEC originally rejected each of its derivatives as Bitcoin of ETFs because of manipulation concerns, as well as the availability of Bitcoins on numerous unregulated exchanges. Indeed, some have gone so far, that Bitcoins recent $300 leap, which coincides with that of BitMex for ‘maintenance’ has been taken offline, is a confirmation of the SEC’s commitment to approving Bitcoin-based ETFs.
Surprisingly the SEC after the yesterday’s rejection has prematurely decided to review these proposals, originally authored by employees on behalf of the Agency Board.
SEC Commissioner Hester Peirce tweeted:
“Yesterday’s staff orders disapproving SRO rules related to a number of bitcoin ETFs are stayed pending Commission review”
SEC Commissioner Peirce Per-Bit Coin
Peirce explained that the SEC delegated often similar decisions on employees and reserves the right to review decisions and change, even after official declarations have been made. In the past, Peirce has their opinion about the rejection of the Bitcoin ETF of the Winklevoss twins expressed by the SEC with the following arguments:
“If we would approve the ETF here debating, the investors could choose whether they want to buy it or avoid it. The current approach of the Commission deprives investors of this decision. I reject the role of gatekeeper of innovation – a role that is different from (and incompatible with) our investor protection mission, the promotion of capital formation and the facilitation of fair, orderly and efficient markets.”
She also provided a copy of a letter to the NYSE stating that the SEC Chairman, Jay Clayton and Associate Commissioners will scrutinize each application to determine whether or not the SEC employees have made a fair decision. The letter contains no date or deadline for the publication of this review decision.