The US Securities and Exchange Commission (SEC) once again postpones the decision on three new Bitcoin ETFs. Bitcoin ETF offers have been reviewed for several months, but the SEC still takes the maximum allowable time in accordance with federal regulations.
The regulator did not provide any reasons for such a delay, and is not obliged to do so. Presumably, the problems are primarily in determining the bitcoin itself. Bitcoin is not a security, states Ed BUTOWSKY, Managing Partner at Chapwood Capital Investment Management, and the SEC’s definition for security requires that the thing being traded is representative of something else of underlying value. Bitcoin has no underlying value. It isn’t real.
Lee REINERS, Director of Global Financial Markets Center at the Duke University School of Law, told the SEC that a bitcoin ETF isn’t needed:
“…It is easy for investors to acquire and store bitcoin because bitcoin is a digital asset”.
16.07.2019 | in Legislation
He noted that the market is full of fraud and manipulation, and there is no single way to determine the price of bitcoin; also the market is full of volatility. For this reason, according to Reiners, the SEC rejected the Winklevoss Bitcoin ETF. According to market representatives, the reason why the SEC will not accept ETFs lies in the rhetoric of state authorities such as Stephen MNUCHIN: the US does not want to destabilize the dollar as a global reserve currency.
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