What’s SEC Bitcoin ETF Rejection Review Means
“It’s a positive development and we look forward to engaging with the SEC commissioners with this particular subject,” Rhind told CoinDesk.
And, maybe the SEC leadership only issued a decision following a overview of a past bitcoin ETF rejection for the proposal by shareholders Tyler and Cameron Winklevoss.
Jake Chervinskya defense and lawsuit lawyer for Kobre and Kim LLP, told CoinDesk the petition for review was likely”initiated by a member of this Commission” as no sign about the SEC’s website points to actions taken by either of both exchanges responsible for the ETF filings — that the Chicago Board Options Exchange (Cboe) and New York Stock Exchange (NYSE).
However, what exactly does it mean if the Commission says it will”review” that the disapproval orders? And what implications does that choice have for the proposed bitcoin ETFs themselves?
With commenting because Chervinsky points out, the body responsible for putting the record and finally gathering the extra info is Chairman Jay Clayton and also the three SEC commissioners.
Published at Fri, 24 Aug 2018 21:00:35 +0000
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“Given that the nature of decision and also the fact that the commissioners so recently handled the Winklevoss appeal, I don’t think it will take long to finish this review.”
In consequence, it merely takes the vote of one Commission member to begin a petition for review, also as indicated in the Rules of Practice, once granted,”that the Commission shall set forth the time in which any party or other person may submit a statement in support of or in opposition to this actions made by delegated authority.”
Regardless, this review’s announcement was by individuals like GraniteShares CEO Will Rhind, whose company is currently waiting for a last response from the SEC rankings.
At the time, Commissioner Hester Peirce wrote a record of dissent disagreeing with the outcome of the review.
After the team pushed against the idea of the SEC, the Bats BZX trade, which filed the proposed rule change petitioned for an overview.
Her discussions — the SEC ought to be focused on disclosure instead of enjoying”gatekeeper” to the marketplace — will likely be raised again during deliberations on the present pair of bitcoin ETF proposals put forth from Direxion, GraniteShares and ProShares.
According to the Rules of Practice, the Commission may effectively”confirm, reverse, modify, set aside or remand for further proceedings, in whole or in part,” which theoretically means that the end of this batch of bitcoin ETFs is not closing.
Previous reviews have obtained anywhere between six to 16 weeks, Chervinsky affirmed, and the Rules of Practice do not place a strict deadline to the SEC, which makes it”difficult to predict” how long this particular review will require.
Over a year following the inspection started the SEC’s commissioners came to this decision that the ruling to disapprove would not be overturned, affirming”BZX hasn’t fulfilled its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate its proposal is consistent with the demands of the Exchange Act Section 6(b)(5).”
Document review image via Shutterstock
Referencing Rule 431 of this Commission’s Rules of Practice, the SEC stated in a series of letters it could reconsider the 3 rejections made from the U.S. operator’s staff.
The Winklevoss bitcoin ETF was refused in March of last year, seemingly ending a multi-year effort to make a”physically” endorsed bitcoin fund into which investors can buy stakes.