The Securities and Exchange Commission, the regulating authority of the US, has once again decided not to allow the trading of Bitcoin ETFs. Specifically, it has rejected five proposals made by a subsidiary of the New York Stock Exchange.
However, in a potential reversal of fortune, the SEC on Thursday announced that the Commission, led by Chairman Jay Clayton, will review those orders, which had originally been drafted by staff members on behalf of agency leadership. As SEC Commissioner Hester Peirce explained on Twitter, the Commission commonly delegates such rulings to staff members but may review their decisions after the fact.
The U.S. Securities and Exchange Commission (SEC) on Thursday stayed three orders denying bitcoin ETF applications that sought to list a total of nine such funds on regulated exchanges including NYSE Arca. Those orders, as Crypto world news reported, were issued on Wednesday, further confirming the agency’s hesitancy to make cryptocurrency more accessible to retail investors through conventional financial products.
Peirce who criticized the agency’s recent disapproval of a Winklevoss-backed bitcoin ETF posted a copy of a letter, sent by the agency and addressed to NYSE, attesting to the fact that the chairman and commissioners will personally review the applications to determine whether SEC staff ruled appropriately.
The cryptocurrency market has been generally declining in value this year, and some see these new financial derivatives as a way of injecting it with new life. As evidence of this, see the rise and fall in the price of Bitcoin prior to and following the SEC’s latest rejection of the twins. The letter does not give a timetable for when the Commission will make that determination.