Rejections by the SEC to the Bitcoin ETFs are more associated with the profile of the applicants

Critics of the measures, even within the same agency, ensure that the regulator pays more attention to the characteristics originally considered in the participants when granting these permits instead of the innovative potential that the proposals could bring to the new emerging markets.
The funds quoted on the stock exchange, ETF, Bitcoin have given much to talk about during these months, just because of the promising that may result in the opinion of many for the industry and the refusal of the US Securities and Exchange Commission (SEC, by its abbreviations in English) to approve the requests introduced by companies very reputed of the financial ecosystem.

Following the rejection announced by the SEC a couple of weeks ago of nine ETF requests, the indication associated with the decision made indicated that such proposals did not contemplate measures to avoid acts and fraudulent practices for manipulating prices. Although the organism assured that it would review its decision, until the moment it has not pronounced retreating on the measures originally dictated.

According to the CEO of the payment company Abra, Bill Barhydt, the SEC actually rejected the ETF requests precisely because the companies that operate in the cryptography industry do not fit the profile that applicants must have for this type of practices.

One of the ETFs on which there were more expectations in the ecosystem was the one presented by the Winklevoss twins, so their rejection was seen as a blow to the industry after the efforts made by Gemini executives to provide greater legitimacy to the exchange operations with cryptocurrencies. The statements issued by the commissioner of the SEC, Hester M. Peirce, seem to indicate that there are disagreements within the agency, since it assured that the decision taken "undermines the protection of investors by preventing further institutionalization for the Bitcoin market".

However, ecosystem enthusiasts still see a victory in the midst of such a scenario, precisely because they categorize the institutional interest seen to date as an important step for the transformation of the industry, as more and more banks and consumers They cherish the possibility of using digital currencies within their daily operations. On the other hand, investors have shown themselves to be optimistic, since the falls in prices recorded this year constitute a strong reason why ETFs have not yet been approved.

In spite of everything, there are still many expectations in the position that the SEC could take against the request presented by CBOE, a securities company that has a very close relationship with the regulatory authority, and that took the initiative to market Bitcoin futures. at the end of last year, generating great stir within the industry and attracting large participants of the financial ecosystem to the world of digital currencies.

Source: ToshiTimes