Thursday, July 26, the Commission on securities and exchange Commission (SEC) once again rejected the request of the brothers Cameron and Tyler Winklevoss to create exchange traded Fund (ETF) pegged to bitcoin.
In 2016, the Bats BZX Exchange, Inc. (BZX) filed with the SEC a request to change the rules, to be able to sell shares in the Winklevoss Bitcoin Trust. This was the first application to create an ETF bitcoin from the Winklevoss brothers. In February 2017, the SEC rejected her due to the fact that the nature of the cryptocurrency market is largely unregulated.
«When the spot market is not regulated — there should be a significant regulated markets of derivatives related to the underlying asset in which the exchange may enter into an agreement on sharing data,» said SEC.
After the SEC rejected the initial offer, the group has filed a «motion for reconsideration».
In a Thursday release, the SEC once again rejected the petition. With regard to the claim Winklevosses that the cryptocurrency markets are «uniquely resistant to manipulation,» the Agency States that «the Commission does not support such a conclusion».
The SEC also stressed that their refusal is not a rating of the cryptocurrency or blockchain technology in General, and relates directly to the structure of the proposals:
«The Board’s denial relates solely to the proposed rule change, as BZX was unable to confirm that their proposal is consistent with the exchange Act and the Rules of practice of the Commission. Rules must be designed to prevent fraudulent actions, manipulations and practices».
In addition to doubt in relation to low liquidity, the Commission also expressed concern that a significant portion of trade bitcoins happens in «unregulated exchanges outside the United States.»
Cryptocurrency market reacted to the failure of the SEC is to be expected fall. Immediately after the decision was published, the bitcoin lost nearly $ 400 and at the time of publication was trading below $8000.
Many analysts argue that the recent growth of bitcoin prices was triggered by expectations of many traders, a positive decision of the SEC in respect of the ETF bitcoin. Despite the fact that now it seems unlikely, on Tuesday it became known about the transfer decisions of the SEC regarding the Bitcoin ETF Direxion company. On request of companies VanEck and SolidX, causing the most interest at the present time, in recent publications, the regulator said nothing.