The proposal by cyber-money investors Tyler and Cameron Winklevoss regarding listing a BTC ETF saw a red light from the U.S. Securities and Exchange Commission (SEC).
Why did Winklevoss’ Idea saw a Rejection?
The agency noted that its disapproval is not based on an evaluative reasoning against digital money and blockchain technology in general, but instead, on the assembly of this proposal.
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The rejection is another negative one, coming from the agency regarding the approval of virtual money exchange-traded product. Almost two years ago, the Commission rejected a change of rule requested by the Bats BZX Exchange.
Bearish Consequences For The “Big Daddy”
As per Coin Desk’s price index, the cost of bitcoin plunged from around $8,300 to $7,973.81 on July 26, following the disapproval. The BPI was showing a cost of nearly $8,004, when as of press time.
The agency, however, allowed the possibility for such products to be authorized in coming years, stating its knowledge, wherein with time, controlled digital currency-related markets could continue to advance and mature.
The point that Bats BZX pursued to counter after the refusal against their request was one made by the body upon disapproval. It is the concern that the cost of digital currency is defenseless against exploitation.
The agency wrote, due to enough surveillance-sharing agreements not been available and the present ones with the digital money-related markets are not controlled, nor important, or both. So it concludes that the request contradicts the Exchange Act.
Bringing into attention the lack of surveillance-sharing agreements, accompanied by exchanges site confirmation about the cost of digital currency, within conditions of the Exchange Act, the government agency moved this counter away.
Stating a recent study, the Commission says that, this suggestion from the new academic study reveals the cost of virtual currency can be and already been taken advantage of digital currency trading places.