The US Securities and Exchange Commission has rejected the Bitcoin Exchange Traded Fund (ETF) application from the New York company Wilshire Phoenix, under continuing concerns about market manipulation and a lack of supervision sharing agreements.
Commissioner Hester “Crypto Mom” Peirce publicly disagrees with the rejection.
NYSE Arca had submitted a proposed rule change to enable the listing and trading of Bitcoin and Treasury Investment Trust of Wilshire Phoenix in the United States. The proposal included both US Treasury Bonds and Bitcoin and hoped to meet the SEC’s concerns about market manipulation by automatically balancing again in bonds during periods of BTC price volatility.
The SEC explained the reasons behind its Wednesday ruling that the company had been unable to provide sufficient evidence that it could protect itself against “fraudulent and manipulative acts and practices” in the Bitcoin market to “protect investors and the public interest” to protect.”
The SEC noted:
“The Commission must reject a proposed rule change submitted by a national stock exchange if it does not find that the proposed rule change is in accordance with the applicable requirements of the Exchange Act – including the requirement in Section 6 (b) (5) that the rules of a national stock exchange are designed to prevent fraudulent and manipulative acts and practices. “
The SEC has so far rejected at least nine previous Bitcoin ETF applications, including applications from Bitwise Asset Management, VanEck / SolidX and Direxion. Kryptoin and Crescent Crypto still have crypto ETF proposals pending SEC decisions.
In her divergent opinion on the rejection, Commissioner Peirce stated that “the committee had again rejected a proposed regulatory change that would give American investors access to Bitcoin through a product listed and traded on a national stock exchange subject to the committee’s regulatory framework. “
“This line of disapproval leads me to the conclusion that this Commission is not prepared to approve the list of products that would allow access to the market for Bitcoin and that no application meets the ever-changing standards that this Commission applies to it on Bitcoin-related products – and only for Bitcoin-related products. “