The SEC commissioner has just released an official dissent from the agency’s recent decision to reject the Bitcoin ETF. She explains why she thinks it’s a bad decision.
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The proposal in question was the second Bitcoin ETF filed by founders Gemini Cameron and Tyler Winklesvoss to be rejected by the SEC. Denied on July 26, this ETF tried to solve the problems that led the SEC to reject the first attempt in March 2017.
In a new CNBC interview, Commissioner Hester Peirce says that the ETF proposed by the Winklesvoss twins was fully compliant and in full accordance with the rules of the Securities Exchange Act.
« The majority of the Commission stated that the proposed change was not in accordance with applicable law. In this case, it is the Securities Exchange Act. I am of the opinion that the change before us was in accordance with the Stock Exchange Act. We have no reason not to allow this product to trade. So, I would have approved and authorized it, whereas my colleagues thought that it should not be allowed …
Specifically, in this case, I think what they did was look at this ETF through the underlying asset. In this case, Bitcoin. They, therefore, raised concerns about the market for Bitcoin, not the ETF. I think that by doing so, they went beyond what the law allows us to do. We should have focused solely on the market where the product would trade rather than on the underlying Bitcoin markets. I think that even if you decided to focus on the Bitcoin markets, I would have come to a different conclusion from the one that was taken. »
Commissioner Peirce added that the SEC had made its decision based on perceptions of price manipulation of Bitcoin, a concern it says the SEC does not have the power to deliberate.