The U.S. Securities and Exchange Commission (SEC) has stated the agency will re-evaluate its recent verdict to reject nine applications for a bitcoin exchange-traded fund (ETF), according to Reuters on August 23.
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The SEC denied the requests from three companies trying to bring a bitcoin ETF to market, citing the products didn’t fulfil “Exchange Act Section 6(b)(5), in particular, the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
Not even 24 hours later, the SEC released letters on their website stating the regulatory agency will be reviewing the bitcoin ETF decision. No deadline was given for the review.
Last month, the Winklevoss bitcoin ETF fund by Bats BZX Exchange, Inc. was rejected by the SEC citing “the largely unregulated nature of BTC markets.”
After the decision, SEC Commissioner Hester M. Peirce disagreed with agencies stance stating the SEC overstepped its “limited role”, focusing on the entire bitcoin market, rather than the derivative.
Peirce continued to suggest the rejection of a bitcoin ETF will likely “inhibit” the standardization of the bitcoin market.