ETF REJECTION PUTS DOWN THE BITCOIN BELOW $8000
After appearing for Mithun co-founder Cameron and Tyler Winklawos, the SEC announced for the second time after reviewing the application. The SEC also opened a new round of public comment for this second review. The initial application was rejected on March 10, 2017.
During the first review, the SEC was highlighted as the problematic application of the Winklaws' modified parts The SEC reviewed a complete "De NOO" review with the revised application, which means that the regulators considered it as a new application.
Logic behind the rejection
BX Exchange ETF, the ticker symbol was the first person to submit applications to SEC for 2017, with BXZ. When accepting a new ETF or alternative investment, then SEC Exchange Section 6 (B) (5)
SEC for BEXZ ETF is believed to be the main point of this regulation was whether the exchange had the ability to "prevent fraudulent and interference acts and practices" and "to protect investors and public interests" in the exchange.
As CCN pointed out, the regulators started an investigation in May whether the Bitcoin price movement was tampered with.
According to the SEC the issue of dispute was that Bitcoin did not provide protection against manipulation in the form of property class and that technology did not provide adequate equipment to prevent fraud and money laundering.
"Bitcoin makes geographically diverse and continuous nature of business difficult and prohibited to manipulate the price of bitcoin" 13- and therefore Bitcoin market "generally manipulate compared to equity, fixed income and commodity futures markets. Less sensitive. "
The applicants also argued that SEC has heavily relied on the monitoring agreement on other ETFs which they had approved in the past.
However, the SEC did not buy it. He argued that "monitoring-sharing agreement" is a necessary security against fraud and manipulation. There is not enough monitoring to prevent fraud in bitcoin as an underlying asset class. Although the SEC did not say that it was a requirement, but did not give up on many other options, especially considering that the asset class is designed to avoid monitoring in some cases - or at least Give tools to users with whom they can do this.
The SEC, however, has somehow struck the promising tone, Bitcoin is in the initial stages stating the market rules and they are watching the Bitcoin derivative market to keep tabs on their popularity.
It has been stated in the announcement that the SEC is open to future applications which have ample amendments to support the monitoring agreement. As CCN pointed out, CBOE had submitted an application earlier this month and it is still under review. Since CBOE is a key player in futures exchanges and has a close relationship with regulators, therefore their application probably understands the fear of fraud better.