SEC Accepting Public Comments to Decide the Future of ETF Backed by Bitcoin and T-Bills

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SEC Accepting Public Comments to Decide the Future of ETF Backed by Bitcoin and T-Bills
The proposed rule change will allow Wilshire Phoenix Fund to list shares of ETF on NYSE Arca. SEC has declared that the public can comment on the aforementioned matter within 21 days’ time period.
SEC Accepting Public Comments to Decide the Future of ETF Backed by Bitcoin and T-Bills

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Source: CoinSpeaker

SEC’s Hester Peirce urges crypto-community to ‘walk the regulators through the technology’

The uncertain regulatory climate with respect to the cryptocurrency ecosystem has led to detrimental consequences, with the geofencing of crypto-tokens by Poloniex being a recent example. The Commissioner of the United States Securities and Exchange Commission, Hester Peirce, had previously expressed her fears regarding the delay of the same.
While speaking to Naomi Brockwell in an interview held on the sidelines of Consensus 2019, Peirce acknowledged that “there was room for the regulators to do more” in the space. She had said,
“We need people to come in and hold our hands a little bit – and walk us through the technology”
The Commissioner stated that people have come to rely too heavily on what they perceive as an “SEC seal of approval”. She further urged users in the space to make disclosures for the things they want to trade, keeping in mind basic compliance.
Famously referred to as “crypto-mom” for being the dissenting voice against SEC’s decision to reject an exchange-traded fund [ETF] offering exposure to Bitcoin, she further noted that one of the “best things” that could be done was to try and “encourage skepticism”.
According to Peirce, the recently released SEC guidance was a little overwhelming for people in comprehending securities law. She stated,
“It threw lots of factors onto the paper and then it said to people, all right, go figure out how those should be weighted and that’s a concern because people you know that in some ways generates more confusion about how to weight these things how to figure it out, so I think we’re not thinking always that this is a space where you’ve got a lot of people, who haven’t thought about securities laws and now this is their first interaction with the securities laws and it’s a little overwhelming.”
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Source: AMB Crypto

Will SEC and CFTC Ever Come to a Compromise?

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Will SEC and CFTC Ever Come to a Compromise?

Konstantin Rabin, financial expert and crypto enthusiast, takes a look at how regulatory institutions are different in terms of Bitcoin regulation and whether they will come to an agreement at all.

Will SEC and CFTC Ever Come to a Compromise?

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Source: CoinSpeaker

45 Days Left for SEC to Decide on CBOE-VanEck Bitcoin ETF

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45 Days Left for SEC to Decide on CBOE-VanEck Bitcoin ETF

On April 5th, 2019, the SEC will have to announce their decision to either approve, deny or extend the decision-making period on Cboe/VanEck/Solid X’s Bitcoin ETF.

45 Days Left for SEC to Decide on CBOE-VanEck Bitcoin ETF

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Source: CoinSpeaker

SEC and CFTC Set to Collaborate To Regulate Bitcoin ETFs and Other Investment Products

Reports revealed that the high profile regulators of the crypto market, SEC and CFTC is open to collaborating to regulate crypto investment products, including Bitcoin ETFs.
SEC Commissioner Hints To Collaborate
However, during ‘a Bipartisan Policy Center event’ last week which themed on ‘The Year Ahead for Capital Markets’, the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) discussed the better approach on regulating crypto products such as futures and ETF based on Bitcoin. At the event, so-called Crypto Mom, the SEC commissioner, Hester Peirce says that;
“At the SEC we’ve been unwilling to … sign off on a bitcoin ETF, an exchange-traded product based on bitcoin. My concern about our approach in that area is it looks a little bit like a merit-based approach judging the underlying bitcoin markets.”
An Exchange-traded fund based on Bitcoin is on rich bulletins every new day – since SEC is reluctant to approve ETF filings. In fact, Coingape reported that SEC has forced ‘a partial bitcoin ETF proposal, submitted by ‘Reality shares’ to withdraw it.

SEC staff requested to withdraw the ETF proposal submitted by @RealityShares On Next Day of Filinghttps://t.co/gCq8GPFQVU#SEC #ETF #BitcoinETF #Bitcoin #Cryptocurrency #Crypto #Finance #Bitcoinfutures
— CoinGape (@CoinGapeMedia) February 14, 2019

CFTC Follows Self-Certification Rule
Although regulations on Bitcoin and Crypto isn’t certain at many locations of the world the firms are building many projects on top of it. In Peirce view, regulators should be at their best diligence to decide on any product which are built on top of the market and those that are not regulated yet. With this, she argued that;
There are lots of markets that aren’t regulated but we nevertheless build products on top of them.” She said“I think we have to be very careful with that kind of reasoning’.
As such, the discussion took over by Brian Quintenz who is the CFTC Commissioner. He explains that any contract before they present will ensure that it meets the requirements of the Act. He notes that;
“We have a process in the Commodity Exchange Act that allows the exchanges to self-certify a contract if they believe it meets the requirements of the Act.
With the self-certification process, CBOE and CME will proceed with the contract that they see has good potential and opportunity to take forward. Elaborating this, CFTC commissioner argues that we disagree you when we really see a project has a better opportunity and ‘we self-certify that contract’.
 “[Both CBOE and CME Group] pursue that self-certification [route] so these contracts get listed without our approval but also without our disapproval.”
Interested in Working Together
Taking these sneaky points, Peirce goes on discussing the current market scenario which is quite confusing on regulatory stance. While explaining the better way on deciding crypto assets, Peirce hints to collaborate SEC and CFTC to serve better on providing guidelines. In her words;
“[This is] an area where I think Brian and I are interested in working together.”She continued, there [are] questions about where your jurisdiction ends and ours begins and again we don’t want to have overlap there so you know my main concern has been that I think we need to do a better job providing guidance,”
So readers, what do you think of SEC and CFTC collaboration if it happens? Do you think it onboard the clarity in the crypto market? share your opinion with us.
The post SEC and CFTC Set to Collaborate To Regulate Bitcoin ETFs and Other Investment Products appeared first on Coingape.
Source: CoinGape

SEC could include Bitwise’s Bitcoin ETF in federal registers; proposal under review for approval

Since the turn of 2019, the SEC has been prominently involved in the sphere of cryptocurrencies with certain institutions reaching out for Bitcoin ETF approvals. To add to this, the recent remarks made by former SEC Commissioner Robert Jackson Jr, that it was only a matter of time before a Bitcoin ETF gets approval, has stirred a lot of attention towards the independent US government federal agency.
According to reports, the US Securities and Exchange Commission [SEC] have initiated the process of considering a rule change for listing the Bitcoin ETF proposal submitted by Bitwise Asset Management and NYSE Arca on February 11.
The proposal itself was published in the Federal Register on 15 February, which leaves the authorized personnel with 45 days to make the initial decision to approve, reject or further extend the proposal, even though the SEC will, in total, have a duration of 240 days to make the final decision on whether to approve or disapprove the proposal.
The Bitcoin ETF application was first put forward by Bitwise Asset Management in January 2019, but it could not get published in the Federal Register due to the US government shutdown. However, there has been a new turn of events now, as the proposal is now under review by the SEC.
According to the initial registration statement, the ETF would track the Bitwise Bitcoin Total Return Index, which takes the value of Bitcoin and any meaningful hard forks into account.
Moreover, what’s unique about Bitwise’s Bitcoin ETF is that the company wants its fund to be supported with spot prices from exchanges and physically settled futures contracts. This is different from any other BTC ETF that was proposed before, as previous ETFs were supported with cash-settled contracts.
According to the initial formal statement, the Bitwise ETF would track the Bitcoin Total Return Index, which will take the value of Bitcoin, and further significant hard forks into consideration.
Moreover, the company’s BTC ETF would want their fund to be supported with spot prices from exchanges and physically settle future contracts. This sets the company’s ETF apart from the earlier BTC ETFs that were put forward and supported with cash-settled contracts.
Bitwise’s global head of Exchange-Traded Funds, John Hyland, painted an optimistic image and seemed hopeful that the SEC will approve their Bitcoin ETF.
He stated,
“While there can be no assurance that the 19b-4 application will be granted or the SEC will review and ultimately accelerate the registration statement, we are optimistic that 2019 should be the year that a bitcoin ETF launches.”
The SEC has in the past turned down its approval for several Bitcoin ETF proposals. However, since SEC Commissioner Robert Jackson Jr’s statement, Hester Peirce, another commissioner at the SEC has come forward and offered optimism about the eventual approval of a Bitcoin ETF.
The news around Bitcoin ETFs have invited a lot of attention from crypto enthusiasts around the world who hope that a successful ETF will lead to an event which will help take the virtual currency out from the current bearish trend.
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Source: AMB Crypto

SEC to Clarify ‘Overly Broad’ Regulation for Crypto Token Sales

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SEC to Clarify ‘Overly Broad’ Regulation for Crypto Token Sales

The crypto-darling SEC commissioner Hester Peirce is explaining delays in a regulatory toolset for token offerings as she mobilizes financial authorities to work on a deliberate approach to digital assets.

SEC to Clarify ‘Overly Broad’ Regulation for Crypto Token Sales

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Source: CoinSpeaker

SEC Commissioner Brings another Hope, shares “What Does not Constitute a Security Offering”

Hester Peirce known as Crypto Mom has yet again spoken in favor of cryptocurrencies. Recently, the leaked interviews of SEC Commissioner gave us hope for Bitcoin ETF approval. Now, Hester Peirce, SEC Commissioner is talking about the most crucial aspect that is “security offerings.”
Blockchain-based Networks doesn’t Fit Neatly within Securities Framework
In her latest speech on “Protecting the Public While Fostering Innovation and Entrepreneurship,” she addresses cryptocurrencies that has been challenged by regulators all over the world, along with SEC. Peirce shares that the “very essence” of this space that is decentralization makes regulating it challenging.
The existing securities law are designed with the assumption that “every issuer has someone at the helm who can authoritatively disclose the relevant material information about the organization.” However, Peirce says,
“Blockchain-based networks offer a new way of coordinating human action that does not fit as neatly within our securities framework.”
She further notes that the objective of these projects is to “run on diffuse contributions” instead of centralized entities that run networks. “In the end, there may not be anyone steering the ship.”
“As Director Hinman noted in his speech, it is the nature of the transaction that determines whether an offering of securities has occurred, not the item being sold.”
Director Hinman had said that “Once “a network becomes truly decentralized, the ability to identify an issuer or promoter to make the requisite disclosure becomes less meaningful” and offers and sales of tokens are no longer subject to the securities laws.”
Whether and How Regulation should be Employed
Giving an example of the Basis project, that returned $133 million in capital to its investors due to not being compliant with the security regulations, she says, “my antennae will go up when apparently legitimate projects cannot proceed because our securities laws make them unworkable.”
Once more blockchain projects mature, she says, clear lines could be drawn. And this delay, she says, “may actually allow more freedom for the technology to come into its own.”
The point is not only the regulation of token sales but also the platforms where they are traded. She also addresses the “great interest” in Bitcoin ETFs where the approach is merit-based regulation, noting that the regulators are “impulsive in running away from anything labeled crypto,” just like investors “jumping blindly at anything labeled crypto.”
She concludes that regulators must think carefully about, “whether and how regulation should be employed,” as there are potential consequences of regulation that involves substituting a government mandate, overruling private arrangements, and the penalty for failure to comply with the mandate.
The post SEC Commissioner Brings another Hope, shares “What Does not Constitute a Security Offering” appeared first on Coingape.
Source: CoinGape

SEC’s Crypto Mom: Bitcoin ETF Could Be Approved Tomorrow or in Ten Years Time

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SEC’s Crypto Mom: Bitcoin ETF Could Be Approved Tomorrow or in Ten Years Time

At the Digital Asset Investment Forum held in Washington D.C., a commissioner of the United States Securities and Exchange Commission (SEC), Hester Peirce said it’s better not to hold our breath waiting for a Bitcoin exchange-traded fund (ETF).

SEC’s Crypto Mom: Bitcoin ETF Could Be Approved Tomorrow or in Ten Years Time

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Source: CoinSpeaker

Bitcoin [BTC] is a big learning curve, says SEC Commissioner

The United States Securities and Exchanges Commission [SEC]’s Commissioner, Hester Peirce aka Crypto Mom, spoke about her controversial dissent and explained the statement made in the dissent, in an podcast episode of “What Bitcoin Did”. The commissioner also spoke about how she became aware of the very first cryptocurrency, Bitcoin [BTC].
In the month of July 2018, the SEC officially announced their stance on Winklevoss brother’s proposed rule change. The SEC outrightly rejected the Bitcoin exchange traded fund, quoting the main reason being market manipulation. This decision had disappointed the entire community as it one of the key products desired in the space.
In the conclusion of the dissent, the commissioner declared:
“I reject the role of gatekeeper of innovation – a role very different from [and, indeed, inconsistent with] our mission of protecting investors, fostering capital formation, and facilitating fair, orderly, and efficient markets. Accordingly, I dissent.”
When asked about this, Peirce stated that as a regulator they play a very important role, taking into consideration the many people have “really interesting idea” and the existence of a dynamic economy. And because of this, it was their role to not stand in the way of innovation.
Hester said:
“So I want to be careful to stick to our statutory mandate, which is to uphold the statutory framework and make sure, you know, we have a specific mandate and I want to make sure we stick to that mandate and then allow innovation within the mandate as much as possible.”
The Commissioner went on to say that she was concerned that in a number of areas the commission “sort of stray[s] away”. She added:
“We try to become a little bit more interventionist and what we allow and don’t allow and and I think that’s not really where we belong”
Furthermore, Hester proclaimed that she is pro-innovation and that in her perspective, there is a lot of promise in cryptocurrencies and blockchain technology.
She also spoke about how she was introduced to Bitcoin, stating that it was during her time in the university. The Commissioner stated that she and a few of her colleagues worked on the space, adding that it was fun to learn from them and what they thought of its potential.
Peirce went on to say:
But I think you know in terms of learning about the topic it’s a big learning curve and so I’m constantly trying to listen to podcasts that discuss the issue and talked to people who were knowledgeable about it but obviously there’s a lot with us. I mentioned there’s a lot within my mandate so I’m trying to follow many issues.”
The post Bitcoin [BTC] is a big learning curve, says SEC Commissioner appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin Shorts Closing Quickly Signals Good Times are here to Come

Bitcoin over past couple of days has seen some great spikes. And these spikes have come to post the resilience its showed of correcting minorly in the wake of the US Securities and Exchange Commission’s latest round of Bitcoin ETF proposal rejections. This resilience and some follow up good news has created a sought of fear in the minds of the bears and it seems they are covering their short positions.
Bitcoin ETF to undergo review keeping the market active
The SEC announced late on Wednesday that it had decided to reject nine proposals for Bitcoin exchange-traded funds from ProShares, Direxion, and GraniteShares. The regulator said that in all instances, the exchanges have not “the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices”. However, it also said that that the rejections “does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment”.
However, it was announced on Tuesday that the rejection orders had been stayed and would now be reviewed by senior SEC officials.
As SEC secretary Brent Fields wrote in a letter addressed to NYSE Group senior counsel Eugene Schlanger:
“This letter is to notify you that, pursuant to Rule 43 1 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action. In accordance with Rule 43 1 (e), the August 22 order stays until the Commission orders otherwise.”
Commissioner Hester Pierce who had previously dissented also explained the order in a tweet:
“In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.”

In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.
— Hester Peirce (@HesterPeirce) August 23, 2018

 
Also, read: Bitcoin Bounces over $6,700 & Altcoins Go Green, But Expert Says it can get Really Ugly
Bitcoin Resilient and doesn’t seem to be breaching USD6250-6300
Even when SEC came out with a surprise decision rejecting nearly all major bitcoin ETF applications to the likes of ProShares, Direxion, and GraniteShares, much ahead of reported deadlines, the bitcoin prices did not breach USD 6300. Although there is a sentimental dampness there is no accelerated selling like the one seen when the Winklevoss ETF application was rejected.
Some of the likes of CZ of Binance and eToro CEO Yoni Assia also feel the bear market seems to be nearing the end as the interest of a lot of retail investors is turning towards cryptocurrency trading. Assia said to NewsBTC in an exclusive interview
“In our view, the recent market correction is good for the long-term development of the market. Cryptoassets are still a relatively nascent market; emerging technologies like this often see swings in their value in the early days. Market adjustments like those we have experienced recently help to stabilize prices and make the industry more robust. Despite these adjustments, however, we have not seen a significant dip in demand for digital assets.”
“As the market matures, more investors are expanding their portfolios to include cryptos, while new investors are opening portfolios to trade crypto assets. We do not expect this demand to slow down any time soon, as more people recognize the potential of crypto assets,” Assia stated
Once the hurdle of Bitcoin ETF is over, either way in approval or denial, the institutional investors which are still on sidelines will start contributing to the crypto markets. And as eToro puts it, retail investors are already increasing their stakes in cryptocurrencies. With both sets of investors looking at cryptocurrencies and chances of a revision of Bitcoin ETF, it doesn’t look like bitcoin will breach USD 6250/USD 6300 and hence as Ran NeuNer points out “Bitcoin shorts being closed quickly – 10% closed in the last few hours.”

Bitcoin shorts being closed quickly – 10% closed in the last few hours. pic.twitter.com/67IFEDQDWy
— Ran NeuNer (@cryptomanran) August 25, 2018

Do you think there is enough of the table for Bulls to scare the Bears? Do let us know your views on the same.
The post Bitcoin Shorts Closing Quickly Signals Good Times are here to Come appeared first on Coingape.
Source: CoinGape

SEC Commissioner Hester Peirce Objects the Bitcoin ETF Rejection

Hester Peirce, an SEC Commissioner objects the second rejection of Cboe’s Bitcoin ETF to be managed by Winklevoss brothers by SEC. In her official post, she calls out SEC on dampening the innovation, engaging in merit regulation and inhibiting institutionalization that could mitigate the risks present in bitcoin and crypto market. 
Hester Peirce, “Crypto Mom” dissents SEC’s rejection of Bitcoin ETF
Yesterday, the Bitcoin ETF request on Bats BZX Exchange by Winklevoss brothers was rejected the second time. The first rejection of “Winklevoss Bitcoin Trust” came last year. If it has been approved, this would have become the first ever cryptocurrency ETF. The approval would have further led the institutional investors into the crypto market.
However, not all the officials are against the Bitcoin ETF as SEC Commissioner officially releases “Dissent of Commissioner Hester M. Peirce to BatsBZX”.

Peirce writes,
“I respectfully dissent from the Commission’s order disapproving a proposed rule change, as amended, to list and trade shares of the Winklevoss Bitcoin Trust on Bats BZX Exchange, Inc. (“BZX”).”
She further states,
“Contrary to the Commission’s determination, I believe that the proposed rule change satisfies the statutory standard and that we should permit BZX to list and trade this bitcoin-based exchange-traded product (“ETP”).”
Her point of concern is the consumer protection that is undermined by preventing the institutional investors from entering the market.
“I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market. More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order.”
“The Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of bitcoin ETPs”
adds Pierce.
Also, read: Cboe’s VanEck Bitcoin ETF Still Holds a Chance after SEC Rejects Winklevoss’ Proposal
Institutionalization, Innovation, & Merit Regulation
In addition, she talks about BZX’s role as a self-regulatory organization:
“Because the disapproval order focuses on the bitcoin spot market, it does not give adequate weight to the important function that exchanges, as self-regulatory organizations (“SROs”), perform under our regulatory framework.”
“BZX should, and would, play a central role in monitoring trading in shares of the Trust. In performing that function, BZX would exercise the responsibilities entrusted to it as an SRO and would be subject to Commission oversight. In exercising these responsibilities, BZX would have powerful regulatory and business incentives to ensure the integrity of the products that it lists for trading. Nothing in the record suggests that BZX is unwilling or unable to fulfill its responsibilities under the Exchange Act.”
According to her dissent, institutional investors help the market in maturing and further promote consumer protection.
“In disapproving the proposed listing, the Commission points to problems in the bitcoin market that I believe would be mitigated by institutionalizing the market—a phenomenon that bitcoin ETPs would foster. For example, the order points to the price disparities across the bitcoin markets. While I contend that the markets are already better connected by active arbitrageurs than the Commission’s order suggests, the establishment of an ETP would invite more price arbitrage and thus better connections among markets.”
She believes institutional involvement can rather help the market,
“Greater participation by institutional investors in the bitcoin market would help to pressure exchanges to bolster their defenses against theft, encourage greater investment in custody solutions in the bitcoin space, and make it more difficult for market manipulators to escape the notice of their fellow market participants.”
“As long as these investors decline to enter the bitcoin market because there is no efficient vehicle that would reduce the costs of entry, the features of the bitcoin market that cause the Commission concern are likely to persist.”
Regulators are dampening the innovation, writes Pierce, and indulging in merit regulation:
“By precluding approval of cryptocurrency-based ETPs for the foreseeable future, the Commission is engaging in merit regulation. Bitcoin is a new phenomenon, and its long-term viability is uncertain. It may succeed; it may fail. The Commission, however, is not well positioned to assess the likelihood of either outcome, for bitcoin or any other asset.
Many investors have expressed an interest in gaining exposure to bitcoin, and a subset of these investors would prefer to gain exposure without owning bitcoin directly.”
“An ETP based on bitcoin would offer investors indirect exposure to bitcoin through a product that trades on a regulated securities market and in a manner that eliminates some of the frictions and worries of buying and holding bitcoin directly.”
This is certainly a good sign that one of the SEC commissioners is in favor of Bitcoin ETF which has the crypto community excited and hopeful.
The post SEC Commissioner Hester Peirce Objects the Bitcoin ETF Rejection appeared first on Coingape.
Source: CoinGape