SEC’s Massive Decision On Bitcoin ETF
The role of Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever.
But why did SEC reject Bitcoin?
The SEC has rejected the Winklevoss brothers application for a Bitcoin ETF. After much anticipation (and a spike to record highs earlier today), The SEC has decided to reject the Winklevoss application for a Bitcoin ETF. The SEC premise appears to be the unregulated natuire of the underlying: Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. Therefore, as the Exchange has not entered into, and would currently be unable to enter into, the type of surveillance-sharing agreement that has been in place with respect to all previously approved commodity-trust ETPs—agreements that help address concerns about the potential for fraudulent or manipulative acts and practices in this market – the Commission does not find the proposed rule change to be consistent with the Exchange Act. What goes up (to $1327) comes down hard to $978!
Dropping to one-month lows…
For those who use Coinbase and are trying to trade out (or in), sorry: you just got the Bitcoin Screen of Death: