Winklevoss' Bitcoin ETF rejected again

posted over 3 years ago
The US Securities and Exchange Commission (SEC) rejected the Winklevoss twins’ second attempt to create a Bitcoin ETF and list it on a regulated stock exchange. The Winklevoss’ had modified parts of the application the SEC highlighted as problematic during the first review. For this review, the regulators treated it like a brand new application. The points of contention, according to the SEC, was that Bitcoin did not provide safety against manipulation as an asset class, and that the technology did not provide adequate tools for preventing fraud and money laundering. The SEC primarily argued that Bitcoin, as an underlying asset class, does not have sufficient surveillance built in to prevent fraud.

Nevertheless, the SEC struck a somewhat-hopeful tone, stating Bitcoin market regulations are still in early phases and they are watching Bitcoin derivative markets to keep tabs on their popularity. The SEC stated they are open to future applications that have sufficient modifications to support the surveillance agreement. Notably, SEC Commissioner Hester M. Peirce dissented the decision.
Tags: news, bitcoin