The US Securities and Exchange Commission (SEC) announced its intention to reconsider its previous decision to deny the launch of nine bitcoin-ETF’s.
In a letter to Secretary of the SEC Brent Fields addressed to the senior advisor of the NYSE Group, David di Gregorio, says:
“By this letter, we want to notify you that, according to Rule 43 of the Procedural Commissions (17 CFR 20 I .43 1), the Commission will review the delegated activities. In accordance with Rule 431 (e), the decision of 22nd of August shall remain in force until the Commission decides otherwise.”
The time frame during which the Commission intends to take final decisions on the proposed ETF is not specified. A copy of the letter was also received by CBOE Global Markets.
The news of the intention of the SEC to reconsider its decision was first reported by Commissioner Hester Pearce, who earlier criticized the refusal to launch the bitcoin-ETF of the Winklevoss brothers:
In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.
— Hester Peirce (@HesterPeirce) August 23, 2018
“To put it in clear language: the Commission (the chairman and commissioners) delegates some tasks to the staff. When employees make decisions in such cases, they act on behalf of the Commission. The commission can check the actions of employees, and that’s how it will be in this case, ” – she commented on her first record of the SEC’s plans.
The day before, the SEC rejected nine applications for the launch of Bitcoin-ETF, two of which were submitted jointly by ProShares and the NYSE Arca exchange.
As it was stated in the Commission’s official response, the exchange could not demonstrate that its offer meets the requirements of section 6 (b) (5) of the Exchange Act, in particular with regard to the requirements for preventing manipulation in the market.
Almost the same arguments were brought by the Commission, justifying its decision to refuse the launch of five bitcoins-ETF, the applications for the launch of which were previously filed by Direxion, and two GraniteShares funds.