SEC Delays Ruling on Bitcoin ETF in Blow to Crypto Traders

U.S. regulators have as soon as once more punted their choice on whether or not to approve a Bitcoin ETF.

The Securities and Exchange Commission mentioned in a Wednesday regulatory filing that it’ll search extra public remark on a proposal to checklist a product on Cboe Global Markets Inc. It’s not the primary time this yr that the SEC has delayed giving a solution to the legions of crypto advocates pushing for a manner to commerce the most important cryptocurrency in an exchange-traded fund format.

Crypto fanatics have lengthy been annoyed by the company’s reluctance to sign-off on a Bitcoin ETF, a product that might catapult the world’s Most worthy digital token into the mainstream amongst institutional buyers.

There have been predictions earlier this yr that the regulator could be extra receptive underneath SEC Chair Gary Gensler, who as soon as taught lessons on digital property on the Massachusetts Institute of Technology. But since he took the reins in April, the company has continued to categorical considerations that crypto exchanges lack oversight. And it has laid out recent warnings in regards to the dangers of mutual funds investing in Bitcoin futures.

As a part of Wednesday’s announcement, the SEC requested the general public to weigh in on features of the Cboe proposal, which seeks approval of a VanEck Associates Corp. ETF. The SEC set deadlines into July and maybe even August for folks to reply. Here are among the company’s key questions:

  • Whether the belief and shares related to the ETF could be inclined to manipulation?
  • Whether Cboe’s plan is ready up to stop fraud and manipulation?
  • How clear is Bitcoin?
  • Has regulation of the Bitcoin market modified considerably in the previous 5 years?
  • What views do commentators have on the scale and regulation of CME’s Bitcoin futures contracts?

(Updates with background beginning in third paragraph.)

Recommended For You

About the Author: Daniel