As a relief to the Bitcoin community US Securities and Exchange Commision [SEC] has declared that it will review the rejection orders of 9 Bitcoin ETF proposals that were announced on Wednesday. The SEC denied the approval of nine Bitcoin ETFs submitted by three companies including two from Proshares, five from Direxion and another two from GraniteShares.
According to the letter written by Brent Fields of SEC to the NYSE group, “This letter is to notify you that, pursuant to Rule 43 1 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action. In accordance with Rule 43 1 (e), the August 22 order is stayed until the Commission orders otherwise.” He also added that “The Office of the Secretary will notify any pertinent action taken by the Commission.”
Hester Peirce, an SEC Commissioner, tweeted about the action taken by the SEC. She said that the proposal was disapproved by the SEC staff and the staff does so on behalf of the Commission. She added that the Commision could review the staff’s actions.
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
Hester Peirce had publicly announced her disagreement regarding the SEC order which delayed Winklevoss Bitcoin ETFs. “From my perspective, we need to be mindful of what our role is, and it’s not to be the ones who decide which innovations and which technologies get through and which ones don’t,” she said, according to a Coindesk report.
The SEC has already rejected 15 different proposals already. Wednesday’s announcement added nine more to the list. A recent blog post by Weiss ratings said that the SEC decision on Bitcoin ETFs is preventing the cryptocurrency prices from exhibiting a bullish trend. “One of the biggest issues holding back the price of cryptocurrencies is the SEC, which has rejected 15 different Bitcoin ETF proposals. However, every rejected ETF brings us one step closer to finally getting approval. The SEC isn’t rejecting Bitcoin ETFs because they hate Bitcoin; the SEC is rejecting a Bitcoin ETF because all the previous ETFs failed to meet certain rules and requirements,” read the blog.
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