The SEC agency rejected the Bitcoin ETFs application of ARK Investments and 21Shares.
The US securities and exchange commission (SEC) agency has the authority to regulate the spot money market including the crypto market. US SEC agency known globally among the crypto companies as a strict agency against any kind of little illegal activities. From late 2021 to the beginning of 2022, the Crypto industry only saw the rejection of Bitcoin spot exchange-traded fund applications by the SEC agency.
On 1 April, the US SEC agency issued its official rejection statement on application of Bitcoin spot ETF, which was filed by ARK Investments and 21Shares collaboratively.
Through the published statement on the rejection of this application, the SEC Agency noted the same concerns related to the last few rejected applications.
SEC agency added:
“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular.”
To keep the manipulation like things away, no provisions were made or issued by any government agency for such operations but here SEC agency is responsible to prohibit any kind of such manipulation or related unfair activities, so rejected this application like previous applications faced rejection.
“The requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices and ‘to protect investors and the public interest.”
Recently on these decisions of SEC agency for Bitcoin spot ETFs applications, two exchange-traded funds (EFT) analysts of Bloomberg, Eric Balchunas and James Seyffart, noted that new proposed rules may get introduced under the SEC agency and after that, it will be easy for such applications to get approval.
The new proposed rules may get into effect by the middle of next year, so the SEC agency may give the green light for spot ETFs applications but surely it will be a matter of time if the SEC agency will point out some concerns related to the definition of “Exchange” proposed under the new rule.
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