SEC delays ruling on Bitcoin ETF by 45 Days, In blow to Crypto traders

SEC delays ruling on Bitcoin ETF by 45 Days, In blow to Crypto traders

On Wednesday, the Securities and Exchange Commission impeded a judgment on whether to authorize the very first bitcoin exchange-traded fund (ETF). The latest statement follows SEC Chairman Gary Gensler’s proposal for tougher control of bitcoin exchanges and stronger consumer safeguards. Meanwhile, to fulfill rising demand, U.S. corporations are launching cryptocurrency ETFs.

In a regulatory filing on Wednesday, the Securities and Exchange Commission stated that it will seek more public comment on a plan to list a commodity on Cboe Global Markets Inc. This is not the first time this year that the SEC has delayed responding to the legions of crypto enthusiasts who are pressing for a means to trade the major crypto in the manner of an exchange-traded fund.

Crypto aficionados have long been upset by the agency’s refusal to approve a Bitcoin ETF, a product that could push the world’s largest digital token into investment banks’ mainstream.

Invesco, a New York-based financial firm, partnered with Galaxy Digital Funds to launch the Invesco Galaxy Bitcoin ETF in mid-September. The ETF security solution, which is now pending clearance, has the opportunity to be listed on major U.S. exchanges, with prospective customers assured that all credentials will be carefully protected by a slew of cyber and physical barriers.

The SEC urged the public to comment on portions of the Cboe proposal, which seeks authorization of a VanEck Associates Corp. ETF, as a component of its statement on Wednesday. They also set a deadline for people to respond in July and maybe August.

These were some of the significant questions raised by the agency:

  • Is it possible that the trust and the securities connected with the ETF could be manipulated?
  • Is Cboe’s scheme designed to prevent theft and manipulation?
  • What is the transparency of Bitcoin?
  • Has the Bitcoin market’s regulation altered significantly in the last five years?
  • What are experts’ thoughts on the magnitude and supervision of CME’s Bitcoin futures trading?

The SEC stated in its formal statement: “The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments.”

You Must Read: Rep. McHenry opposes SEC Chairman’s plan to exert more regulation over the Crypto industry

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