SEC Postpones Its Decision on Bitcoin ETF Again
The United States Securities Exchange Commission (SEC) has again postponed its decision to approve Bitcoin exchange-traded fund (ETF) this week, causing panic among crypto enthusiasts.
As per a document release, the SEC has set the new deadline for February 27, 2019. This is required in order to consider the rule change proposal to list a Bitcoin ETF by investment firm VanEck and blockchain company SolidX on the Chicago Board Options Exchange (CBOE). As per the SEC, "The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change."
As per a document release, the SEC has set the new deadline for February 27, 2019.
The Securities and Exchange Act states that the commission must "issue an order approving or disapproving the proposed rule change not later than 180 days" after the date of publication of the notice. Even after that, if the Commission finds it necessary, they may extend that period by 60 days. Accordingly, the maximum period of consideration for the Commission is 240 days. As the proposed rule change was first published on July 2, 2018, in the Federal Register, the extended period should end on January 27, 2019.
Both the firms, VanEck and SolidX had filed with the SEC to list a Bitcoin-based ETF on June 6. But unfortunately, the SEC delayed its decision on listing the ETF until September 30.
Since the Commission had not "reached any conclusions with respect to any of the issues", it requested further comments regarding the decision.
In October, the Commission set a deadline for submitting comments about proposed rule changes related to a number of applications for Bitcoin ETFs.
A meeting was concluded by the SEC with representatives from VanEck, SolidX, and CBOE last week.
A meeting was concluded by the SEC with representatives from VanEck, SolidX, and CBOE last week. A memorandum on the meeting was later published by the Commission. The applicants felt that there was a precedent for a Bitcoin ETF based on other commodities with ETFs - like gold and crude oil.
Recently, the SEC commissioner Hester Peirce, hailed as the "Crypto Mom," for her pro-crypto stance, claimed that a Bitcoin ETF could come "tomorrow or in 20 years." She was quoted saying- "Don't hold your breath. Look, it took a long time for [the] SEC even to establish Finhub."