Announced earlier today, the United States Securities and Exchange Commission (SEC) revealed that they have denied the latest Bitcoin exchange-traded fund (ETF) hopeful from Bitwise Asset Management. The proposal was filed by the crypto services firm in collaboration with NYSE Arca, reportedly “has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices.'”
The SEC Chairman recently expressed his concerns in regards to the bitcoin space. Jay Clayton said earlier this month that bitcoin “trades on largely unregulated markets” and bitcoin custodial offerings might not be ready for institutional use.
At the end of last month, the price of Bitcoin properly sank into the depths and lost around 20 percent of its value in just three days. One prominent crypto figure isn’t all that worried though. The US lawyer, Jake Chervinsky said that the drop is a big indicator that the SEC isn't wrong in staying skeptical of Bitcoin.
Chervinsky posted this at the time on Twitter:
- bitcoin drops 20% over a few days— Jake Chervinsky (@jchervinsky) September 25, 2019
- there's no simple explanation for why
- the drop made big money for offshore unregulated margin trading platforms
- trading on those same platforms might've caused the drop in the first place
- you're still wondering why the SEC has concerns?
It will be interesting to see how this situation plays out but as of right now BTC hasn’t been affected by this decision. For more news on this and other crypto updates, keep it with CryptoDaily!