SEC Delays Ruling on Bitcoin ETF in Blow to Crypto Traders

(Bloomberg) – U.S. regulators have once again put pressure on their decision to approve a Bitcoin ETF.

The U.S. Securities and Exchange Commission said in a filing filing on Wednesday that it will seek more public comments on a proposal to list a product on Cboe Global Markets Inc. with crypto advocates pushing for the largest cryptocurrency in an exchange-traded fund format too act.

Crypto enthusiasts have long been frustrated with the agency’s reluctance to sign a Bitcoin ETF, a product that could catapult the world’s most valuable digital token into the mainstream among institutional investors.

Earlier this year, predictions were made that the regulator would be more receptive under SEC chairman Gary Gensler, who once taught courses on digital assets at the Massachusetts Institute of Technology. But since he took the reins in April, the agency has continued to raise concerns that crypto exchanges have no oversight. And it has issued new warnings about the risks of mutual funds investing in bitcoin futures.

As part of Wednesday’s announcement, the SEC urged the public to consider aspects of the Cboe proposal, which would require approval from a VanEck Associates Corp. ETF aims. The SEC set deadlines until July and maybe even August for people to respond. Here are some of the agency’s key questions:

Whether the ETF-affiliated trust and stocks would be vulnerable to tampering? Whether Cboe’s Fraud and Tampering Prevention Plan is in place? How transparent is Bitcoin? Has regulation of the Bitcoin market changed significantly in the past five years? What views do commentators represent on the size and regulation of CME’s bitcoin futures contracts?

(Updates with background from the third paragraph.)

There are more stories like this on Bloomberg.com

Subscribe now to stay ahead with the most trusted source of business news.

© 2021 Bloomberg LP

Comments are closed.