Editorial staff of the Wall Street Journal accused Securities and Exchange Commission (SEC) Chairman Gary Gensler in a “confusing” approach to accepting a spot bitcoin-ETF.
According to journalists, the head of the department took investors “hostage” until the Commission establishes control over the cryptocurrency market.
The article came after Grayscale and Bitwise denied product registration a week earlier.
Regulator substantiated resolution of non-compliance with the requirements for “prevention of fraudulent and manipulative actions […]and protecting investors and the public interest.”
The publication noted that the capitalization of bitcoin is $390 billion, and its market is the most mature of all cryptocurrencies. This will complicate the activity of attackers
The Commission’s requirement that “a significant portion of trading take place on a regulated market” was called unfeasible by the publication. Transactions take place on crypto-exchanges, for the supervision of which the department does not have the authority.
In terms of confirming market resistance to manipulation, the SEC has set a higher standard for approving digital gold-based spot ETPs than for other commodities. The regulator did not explain how to satisfy it, the WSJ stressed.
The SEC delay is even more puzzling in the background bitcoin futures ETF approvals. Derivatives are traded on CMEbut their prices are pegged to the same major cryptocurrency exchanges that are offered in spot ETF orders.
The publication concluded that Gensler is using the unregulated nature of the markets as an excuse to block, counting on the registration of platforms with the SEC.
“Crypto markets may resemble the Wild West, but this is no reason to refuse spot bitcoin ETFs, which the agency will regulate. Gensler’s “blockade” is counterproductive if its goal is to protect investors, ”the Wall Street Journal emphasized.
Journalists did not rule out that the situation could be changed by Congress or trialinitiated by Grayscale Investments. The latter has a high chance of ending in favor of the management company.
Grayscale Investments filed an application to convert a digital gold-based trust into a spot bitcoin ETF on October 19, 2021.
On December 17, the SEC delayed a decision on her application. In February 2022, the Commission took that step again.
Spot Bitcoin ETFs Receive Regulatory Approval Canada, BrazilAustralia and Netherlands.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
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Editorial staff of the Wall Street Journal accused Securities and Exchange Commission (SEC) Chairman Gary Gensler in a “confusing” approach to accepting a spot bitcoin-ETF.
According to journalists, the head of the department took investors “hostage” until the Commission establishes control over the cryptocurrency market.
The article came after Grayscale and Bitwise denied product registration a week earlier.
Regulator substantiated resolution of non-compliance with the requirements for “prevention of fraudulent and manipulative actions […]and protecting investors and the public interest.”
The publication noted that the capitalization of bitcoin is $390 billion, and its market is the most mature of all cryptocurrencies. This will complicate the activity of attackers
The Commission’s requirement that “a significant portion of trading take place on a regulated market” was called unfeasible by the publication. Transactions take place on crypto-exchanges, for the supervision of which the department does not have the authority.
In terms of confirming market resistance to manipulation, the SEC has set a higher standard for approving digital gold-based spot ETPs than for other commodities. The regulator did not explain how to satisfy it, the WSJ stressed.
The SEC delay is even more puzzling in the background bitcoin futures ETF approvals. Derivatives are traded on CMEbut their prices are pegged to the same major cryptocurrency exchanges that are offered in spot ETF orders.
The publication concluded that Gensler is using the unregulated nature of the markets as an excuse to block, counting on the registration of platforms with the SEC.
“Crypto markets may resemble the Wild West, but this is no reason to refuse spot bitcoin ETFs, which the agency will regulate. Gensler’s “blockade” is counterproductive if its goal is to protect investors, ”the Wall Street Journal emphasized.
Journalists did not rule out that the situation could be changed by Congress or trialinitiated by Grayscale Investments. The latter has a high chance of ending in favor of the management company.
Grayscale Investments filed an application to convert a digital gold-based trust into a spot bitcoin ETF on October 19, 2021.
On December 17, the SEC delayed a decision on her application. In February 2022, the Commission took that step again.
Spot Bitcoin ETFs Receive Regulatory Approval Canada, BrazilAustralia and Netherlands.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
