SEC Delays Decision on Three ETFs
SEC Delays Decision on Three ETFsThe United States Securities and Exchange Commission (SEC) on Monday, delayed a decision on applications for three exchange traded funds (ETF) and related change in rules.
The ETF applications that were rejected included, VanEck SolidX, Bitwise Asset Management and Wilshire Phoenix. News portal Silicon Angle reported that the rule changes are necessary, because under the current rules, the ETFs will be rejected.
This is not the first time, that the SEC has delayed its decision on ETFs. In May this year, the regulator had rejected VanEck’s Bitcoin ETF proposal according to the latest filing on the official SEC portal. The filing stated that SEC had added a period of 35 more days to gather more information regarding the product. Instead of following an adopt-and-improve approach SEC wants to get everything right about Bitcoin ETFs from day #1.
The filing had said, “The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”
In June, the SEC chairman, Jay Clayton, had revealed what are the pending requirements, before approving a crypto-backed exchange traded fund (ETF).
At the time, Clayton had said, “We’re engaging on this [a crypto ETF], but there are a couple of things about it that we need to feel comfortable with. The first is custody: custody is a long-standing requirement in our markets, and if you say you have something you really have it.”
He had further added, “We have sophisticated rules and surveillance to ensure that people are not manipulating the stock market, those cryptocurrency markets by large do not have that; And we’re working hard to see if we can get there, but I’m not just going to flip a switch and say this is just like stocks and bonds, because it’s not.”