SEC Raises 39 Questions on Bitcoin Markets That Are Potential Deal breakers

The SEC (Securities Exchange Commission) in the US has delayed the VanEck Bitcoin-based ETF approval/disapproval once again. However, a lot of positive outcomes was seen this time around. The Regulators doubts now surround the volume and range of Bitcoin markets, rather than its fundamental nature of being a digital currency.
Also Read: Bitcoin ETF Update: SEC Postpones VanEck ETF But Bitcoin Price Responds Positively
VanEck has moved the ETF proposal as a commodity-based trust share which in this case in Bitcoin. The Commission noted that the decision has been delayed as the regulators are still unsure that the Bitcoin-ETF is
“designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,” and “to protect investors and the public interest.”
SEC’s Concerns About the ETF
The SEC has laid down an 11 point, 39 questions long concerns that it still thinks can lead to disapproval of the ETF. The primary concerns of SEC included protection against insider trading and manipulation of markets by a single exchange or point in time.
According to the SEC, the Bitcoin market might still be susceptible to manipulation, and it isn’t of a “significant size” yet to deter fraudulent trading activities.
Recently, the Bitcoin Futures contract at Chicago Futures Exchange was discontinued. Moreover, the actual difference in the volume of spot Exchanges and futures contracts and now subsequently, the ETF must be determined as well.
Furthermore, ETF intends to enable trading of actual Bitcoins [BTC], which is significantly different than Bitcoin Futures Contracts. Hence, the effect of each on both is important to understand the underlying price discovery characteristics of Bitcoin.
Let us understand the difference between the types of commodity-based futures to understand SEC’s concerns. Gold and silver are market-based ETFs, i.e., real gold and silver are held in Trusts, and the spot prices determine the ETF price. However, oil-based ETFs rely on the futures market for price determination.
VanEck has proposed that its CboeBZX index will be backed by the OTC markets. According to VanEck,
“the OTC desks have a better measure of the market than any exchange-specific reference price, whether individually or indexed across multiple exchanges.”
Nevertheless, the SEC has doubts over this the OTC markets are small and ‘unidentified.’ They said,
“[OTC] has no formal structure and no open-outcry meeting place? Is the use of a non-public, proprietary index to value holdings based on OTC activity an appropriate means to calculate the NAV of an exchange-traded product (“ETP”)?”
Bitcoin’s market is active 24/7, hence, the SEC also wants to make sure that the network is large enough to deter all manipulative activities even when the ETF markets are closed. The questions on arbitrage included,
“Is the liquidity of the OTC bitcoin market is sufficient to support efficient arbitrage between the price of the Shares and the spot price of bitcoin?”
Last but not least, VanEck has moved the ETF citing its relationship with Gemini Exchange to provide necessary OTC market price. Hence, the SEC is also concerned about the quantum of the volume of trading on Gemini Exchange vs the rest of the world.
The questions are laid down for any interested party who wishes to contribute to clear the concerns. Moreover, it also indicates while Bitcoin is being accepted as an asset, more clarity on the volatility and markets is required for a successful ETF approval.
Do you wish to contribute to the research? Please share your views and findings with us.
The post SEC Raises 39 Questions on Bitcoin Markets That Are Potential Deal breakers appeared first on Coingape.
Source: CoinGape

SEC delays VanEck Bitcoin ETF decision days after delaying Bitwise proposed rule change

The Securities and Commission Exchange [SEC] has yet again delayed another Bitcoin ETF. This time around, the commission has decided to delay the VanEck Soldix Bitcoin ETF, one of the most awaited exchange-traded funds in the cryptocurrency community.
In the document released today, the exchange has asked for more comments on the proposed rule change and has also asked for further information on queries related to the exchange-traded fund. The commission stated that it has received 25 comments on the proposed rule change so far.  It stated,
“On January 30, 2019, Cboe BZX Exchange, Inc. […] filed with the Securities and Exchange Commission, […] a proposed rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust […] The proposed rule change was published for comment in the Federal Register on February 20, 2019.”
It further stated
“On March 29, 2019, pursuant to Section 19(b)(2) of the Act, the commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”
Notably, the main concerns of the commission continue to be market manipulation and the measure taken by the platform to protect its investors. The commission is currently seeking comments on 14 queries pertaining to the VanEck Bitcoin ETF.
This includes the views of the ‘commenters’ on whether the exchange has entered “into a surveillance-sharing agreement with a regulated market of significant size related to bitcoin?”, the relationship between the Bitcoin futures markets and the Bitcoin spot market, with the focus being price formation, the relationship between the Bitcoin futures market and the proposed Bitcoin ETF, and the commenters’ views “of the Exchange’s assertions that bitcoin is arguably less susceptible to manipulation than other commodities that underlie ETPs”.

As expected, the SEC has delayed the VanEck bitcoin ETF proposal. Read the order here: https://t.co/OB3TBgVGwg.
VanEck’s new deadline is August 19. The SEC can & likely will delay one more time for a final deadline of October 18.
Looks like this ended up the right explanation: https://t.co/bkzeVRt1Hg
— Jake Chervinsky (@jchervinsky) May 20, 2019

Gabor Gurbacs, Director of Digital Assets Strategy with VanEck said on Twitter,
“The VanEck SolidX #Bitcoin #ETF decision has been postponed by the SEC. We continue the hard work towards better-regulated, safer and more liquid digital assets markets. Bitcoin is too big to ignore. Vires in numeris!”
The post SEC delays VanEck Bitcoin ETF decision days after delaying Bitwise proposed rule change appeared first on AMBCrypto.
Source: AMB Crypto

The SEC-Registered Long-Term Stock Exchange: Another Try to Encourage Crypto Investments

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The SEC-Registered Long-Term Stock Exchange: Another Try to Encourage Crypto Investments
SEC-approved Long-Term Stock Exchange set to enable companies raise funds using traditional means and empower investors committed to long-term success.
The SEC-Registered Long-Term Stock Exchange: Another Try to Encourage Crypto Investments

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Source: CoinSpeaker

Crypto Market Wrap: Bitcoin Steady Before ETF Ruling, What’s Expected?

Crypto markets holding onto gains; Bitcoin back at $8,000 prior to anticipated bitcoin ETF ruling, BCH and XRP gaining slowly, Dash pumping. 
Market Wrap
Crypto markets have held on to their weekend gains as Bitcoin remains buoyant. The correction that never was ended in early Sunday trading when BTC surged back towards $8,000. Today market capitalization remains close to $250 billion but a big regulatory decision due tomorrow could create some big moves soon.
Bitcoin revisited its 2019 high of $8,250 a few hours ago. BTC sharply pulled back to just above $7,900 after hitting resistance but has since regained composure and climbed back up to $8k, trading marginally higher than the same time yesterday.
Ethereum is flat and remains just above $250 where it was this time yesterday. ETH has also held on to recent gains but has not seen the doubling in price that its big brother managed since early April.
There is very little movement in the top ten at the time of writing. Only XRP and Bitcoin Cash have added a couple of percent to trade at $0.40 and $408 respectively. The rest are unchanged aside from Cardano which has pulled back marginally.
The top twenty has more red than green during Asian trading this morning. Only Dash is pumping as 10 percent takes it to $165. South Korean markets are getting the majority of Dash trade at the moment as Bithumb is top exchange. Monero has made 3 percent but the rest are in decline.
FOMO: NEXT Spikes into Top 100
Today’s fomo is going to NEXT which has entered the top one hundred with a 45 percent pump. The South Korean exchange Coinbit exchange is creating the fomo for NET. Japan Content Token is also getting a 40 percent spike as it too enters the big 100. These two relatively obscure altcoins are the only ones pumping at the moment.
At the messy end of the table is Decred dumping ten percent today. Digibyte and Crypto.com’s MCO are also sliding with a loss of over 7 percent each.
Total market capitalization 24 hours. Coinmarketcap.com
Total market capitalization is currently at $248 billion which is marginally higher than the same time yesterday. It did reach a high of $257 billion when Bitcoin hit resistance but has since pulled back slightly. There is growing concern that the imminent SEC decision for the VanEck ETF could cause prices to plummet. The regulator is due to decide on approval of the long awaited fund tomorrow but the most likely outcome is another delay.
Market Wrap is a section that takes a daily look at the top cryptocurrencies during the current trading session and analyses the best-performing ones, looking for trends and possible fundamentals.
The post Crypto Market Wrap: Bitcoin Steady Before ETF Ruling, What’s Expected? appeared first on NewsBTC.
Source: New feedNewsBTC.com

SEC Commissioner ‘Optimistic’ About Bitcoin ETF, But Delay of VanEck Proposal Most Likely

A Bitcoin ETF (Exchange Traded Fund) approval would enable the US market to predict and trade on Bitcoin prices without actually having to buy and sell Bitcoin [BTC]. The fund would track the price of the underlying asset, which can be Bitcoin alone or a basket of assets including other cryptocurrencies or other equities, bonds or commodities as well.
The Securities Exchange Commission is the regulatory authority that approves or denies a specific request to launch a new ETF on the market. There are more than nine Bitcoin ETF applications pending with the SEC. Moreover, the SEC also received a new crypto-basked (Bitcoin and Ethereum) based ETF application.
Reportedly, the total capital of the US ETF market is about $5 trillion. Even if 1% of the trading moves to Bitcoin, it will effectively increase the market capitalization of Bitcoin alone by $50 billion.
Industry Experts Weigh SEC Options
Jake Chervinsky, an Attorney at Kobe and Kim LLP. had noted on May 17, 2019, that,
“The SEC delayed the Bitwise bitcoin ETF two days ago but still hasn’t made a decision on VanEck. This is unusual: the SEC would normally handle both ETFs at once. The VanEck deadline is next Tuesday. I still think the delay is overwhelmingly likely, but the timing has me curious.”
Also Read: SEC is not Against Crypto ETF – Bitwise Explains
The comments are likely to get the hopes high for any Bitcoin bull. However, according to the filing dates, the deadline for Bitwise was on 16th May, while the deadline for the re-applied Van Eck proposal in 21st May.
The VanEck proposal was withdrawn and re-submitted by the firm itself on 20 February 2019. The deadline for which was a 45-day period which ends on 21st May 2019.
Furthermore, in a recent interview with Ran Neuner from CNBC fast money, Hector Pirce, the SEC Commissioner hinted at a further delay. She said,
“I am still optimistic. Don’t hold your breath. Market manipulation are issues that get a lots of attention at the SEC.”
Hence, the positive outcome for bulls would be a delay in the approval over a complete rejection.
Jake Chervinsky also predicted that there is a 75% probability that the proposal will be delayed and 0.1% probability of an approval. He said in a recent tweet,
“In the past, the SEC has typically bundled together all of its decisions on pending bitcoin ETFs & announced them on the same day… To be fair, the fact that the SEC delayed Bitwise & stayed silent on VanEck could mean nothing at all. He went on to say that, “Bitcoin has been very volatile recently & investigations related to fraud & manipulation have ramped up (like NYAG & Bitfinex). The SEC has no reason or incentive to come out in favor of bitcoin in this environment.”
Also Read: SEC Delays Bitcoin ETF Yet Again, Will It Hinder the Expected Bull Run?
The Bitcoin ETF proposal has been pending the markets for six years since its first application. The SEC has denied and delayed, and all of them until now. Nevertheless, a denial or delay is unlikely to dampen market spirits.
What are the chances of approval according to you? Please share your views with us. 
The post SEC Commissioner ‘Optimistic’ About Bitcoin ETF, But Delay of VanEck Proposal Most Likely appeared first on Coingape.
Source: CoinGape

Almost One-Third of Bitcoin Exchange Users Come from the US: Report

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Almost One-Third of Bitcoin Exchange Users Come from the US: Report
According to the report published by DataLight, the USA leads the world in crypto trading, with Japan and South Korea taking the second and the third places.
Almost One-Third of Bitcoin Exchange Users Come from the US: Report

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Source: CoinSpeaker

Musk Trolling Ethereum for Real or As a Result of SEC Decision?

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Musk Trolling Ethereum for Real or As a Result of SEC Decision?
Crypto-Twitter is known for its hysterics. Elon Musk challenged this fact when he just tweeted “Ethereum”, and it went in a frenzy as expected, being re-tweeted more than 3000 times in only 2 hours.
Musk Trolling Ethereum for Real or As a Result of SEC Decision?

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Source: CoinSpeaker

SEC Suspends Trading at Bitcoin Generation Inc., Traders and Brokers Warned As Well

The Securities and Exchange Commission (SEC), which is the chief financial watch-dog for trading portals and financial security regulation in the United States (US) has temporarily suspended trading in the securities at Bitcoin Generation Inc.
Bitcoin Generation Inc. (“BTGN”) based in Oklahoma provides trading in about 1000 cryptocurrencies, P2P Exchange platform and also claims to mine Bitcoin and, an altcoin. Furthermore, the hash rate can be rented on demand at the firm.
The SEC has suspended trading activities at the firm effective from 9:30 a.m. EDT on April 29, 2019, and terminating at 11:59 p.m. EDT on May 10, 2019. The commission states that it has temporarily suspended the license due to concerns about the accuracy and adequacy of information in the marketplace concerning the following listed issues:

viability and valuation of a bond that BTGN purportedly acquired from an entity based in the United Kingdom
SEC raised doubts on the promotional activities of the firm and whether or not it was creating a bad name in the market, and
the accuracy and adequacy of current public information regarding BTGN’s financial condition and their outstanding stocks.

SEC Lays Down Rules for Traders and Broker Too
According to the press-release, pursuant to rule 15c2-11 under the Exchange Act, the traders and brokers must follow the guidelines completely before placing any quotations on the Exchange even after the suspension period has been lifted.
The press release stated that the traders must educate themselves before trading on the suspicious Exchange because uninformed mistakes would also be liable to punishment. The press release clearly stated:
“If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to BTGN’s securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met… in violation of
the rule, the Commission will consider the need for prompt enforcement action.”
A Government crackdown is not necessarily negative news as after the crack-down the Exchanges can resume operations after following the compliances laid down by the respective financial authorities of the state.
Will this be an isolated event or more aggressive crack-down will follow on other Exchanges as well? Please share your views with us. 
The post SEC Suspends Trading at Bitcoin Generation Inc., Traders and Brokers Warned As Well appeared first on Coingape.
Source: CoinGape

Tesla (TSLA) Challenging Lyft and Uber With 1 Million Robotaxis

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Tesla (TSLA) Challenging Lyft and Uber With 1 Million Robotaxis
It seems that Tesla is planning to push towards ride-hailing industry, competing with companies such as Uber and Lyft.
Tesla (TSLA) Challenging Lyft and Uber With 1 Million Robotaxis

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Source: CoinSpeaker

US Crypto Enthusiasts Should Vote for Andrew Yang in 2020, and Here’s Why

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US Crypto Enthusiasts Should Vote for Andrew Yang in 2020, and Here’s Why
Andrew Yang, a United States Democratic presidential candidate for the 2020 elections, advocates for clearer crypto regulation and Bitcoin adoption.
US Crypto Enthusiasts Should Vote for Andrew Yang in 2020, and Here’s Why

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Source: CoinSpeaker

Facebook CEO Mark Zuckerberg Faces Shareholders’ Backlash, Asked to Step Down

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Facebook CEO Mark Zuckerberg Faces Shareholders’ Backlash, Asked to Step Down
Facebook’s shareholders have accused Zuckerberg of resolving to dictatorial tactics and leveraging an excessive control on the company’s governance.
Facebook CEO Mark Zuckerberg Faces Shareholders’ Backlash, Asked to Step Down

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Source: CoinSpeaker

Uber’s IPO Filing Discloses $1.8B Loss, Raising Worries

Coinspeaker
Uber’s IPO Filing Discloses $1.8B Loss, Raising Worries
Uber out-paced its rising competitor Lyft by more than $9 billion in revenue and at least 60 million users. That all could be seen from Uber’s S-1, the company has filed its IPO paperwork with the Securities and Exchange Commission on Thursday.
Uber’s IPO Filing Discloses $1.8B Loss, Raising Worries

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Source: CoinSpeaker

Blockstack Set to Raise $50M Via World’s First SEC-Approved Crypto Token Sale

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Blockstack Set to Raise $50M Via World’s First SEC-Approved Crypto Token Sale
Blockstack is likely to set a new precedence in the ICO Industry to be the first company to conduct its token sale under the SEC Regulation A+ framework.
Blockstack Set to Raise $50M Via World’s First SEC-Approved Crypto Token Sale

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Source: CoinSpeaker

Token Taxonomy Act makes comeback; proposes removal of cryptocurrencies from umbrella of securities

Cryptocurrencies being characterized as securities may soon fade away, courtesy of the reintroduction of the Token Taxonomy Act in the United States House of Representatives. Proponents of the decentralized currency realm have long contested decentralized currencies being labeled with the securities tag.
Proposed by Representative Warren Davidson (R), the Token Taxonomy Act will amend the infamous Securities Act of 1933 and the Securities Act of 1934, thereby removing cryptocurrencies from under the umbrella of securities. The act was also attested by Darren Soto (D), Josh Gottheimer (D), Ted Budd (R), and Presidential candidate, Tulsi Gabbard (D), who is a known crypto-investor.
The importance of the act was spelled out by Davidson, who stated that sans the act, the United States would cede the digital economy to emerging markets of the east. He stated,
“Without it, the U.S. is surrendering its innovative origins and ownership of the digital economy to Europe and Asia. Passing this legislation, Congress would send a powerful message to innovators and investors around the world that the U.S. is the best destination for blockchain technology.”
In December 2018, during the close of the legislative season, the Token Taxonomy Act was first introduced. However, it didn’t make much headway then. The recent version will clarify the powers of regulatory bodies like the Commodity Futures Trading Commission [CFTC] and the Federal Trade Commission [FTC].
However, all is not bright. The Act also looks to supersede pre-existing state laws regarding the domestic cryptocurrency industry within its borders. In legal terms, the Token Taxonomy Act will add to the National Securities Markets Improvement Act, which will increase the federal government’s power over the decentralized currency field.
This will be an unprecedented withdrawal of state power in light of the center’s overreach, many legal and crypto-analysts commented. States would cede digital assets regulation to the Federal government, in what will be a blow to not just decentralized currency, but also decentralized governance.
Several analysts have pointed out the semantic confusion that will exist when legislation for a “digital token,” or a “virtual currency” will take place. This will lead to a legal vacuum, leading to the emergence of more problems.
On the bright side, the act will allow the token seller to undercut regulatory supervision, if they can justifiably prove that they weren’t selling securities.
The post Token Taxonomy Act makes comeback; proposes removal of cryptocurrencies from umbrella of securities appeared first on AMBCrypto.
Source: AMB Crypto

Top Trending Crypto News of the Week: SEC, Binance and CoinSquare Among Major Newsmakers

Key highlights:

SEC releases framework for digital assets
Turnkey Jet receives first “no action” letter from SEC for its ICO
Google searches for Bitcoin hit the highest point since November 2018
Coinsquare to Launched stablecoin pegged to Canadian Dollar
Binance to set shop in Singapore this week

SEC releases framework for digital assets
Finally, SEC has broken its silence of cryptocurrencies as it released the framework or “Investment Contract” Analysis of Digital Assets, but not many crypto enthusiasts have been happy with it. The document which was expected to provide legally-binding guidance actually tuned out to be only a framework that “represents Staff views and is not a rule, regulation, or statement of the Commission.” The document further effectively walks through the different pieces of the Howey Test and describes how they may apply to cryptocurrencies and initial coin offerings (ICOs).
Turnkey Jet receives first “no action” letter from SEC for its ICO
Turnkey Jet scripts its name in history as it becomes the first to receive a “no action” letter from SEC for its ICO. In the second important news of this week, SEC released a 13-page letter outlining the several points of the business including the token sale details, need for blockchain, and internal analysis of the Howey Test. The letter concluded that they would take no action as long as the company met certain required criteria.
Google searches for Bitcoin hit the highest point since November 2018
Finally, everything seems to have woken up again with the rise of bitcoin. Google Trend data reveals the spike in searches was single-handedly achieved on April 2 when the price of the cryptocurrency surged nearly 20 percent in a single hour to clock $4,961, its highest price since Nov. 19. While Google Trends does not provide the exact number of searches, it is apparent the amount of worldwide “bitcoin” searches reached 90 percent of what it was on Nov. 20
Coinsquare to Launched stablecoin pegged to Canadian Dollar
Stablecoin mania doesn’t seem to be subsiding as now we may soon see a stablecoin pegged to the Canadian dollar. Coinsquare the Canadian crypto exchange has announced that it is launching a stablecoin pegged 1:1 to the Canadian dollar (CAD). The exchange plans potential roles for its new “eCAD” token in cross-border payments and remittance, peer-to-peer lending, merchant payment solutions, as well as trade settlements and forex conversions.
Binance to set shop in Singapore this week
Binance is the progressing to a newer territory and this time in Singapore. This week Binance CEO Changpeng “CZ” Zhao, at the Deconomy event in Seoul, South Korea announced that the exchange is moving to Singapore in April. He also mentioned that It will be the exchanges next Fiat to Crypto exchange servicing $SGD [Singapore dollar].”
The post Top Trending Crypto News of the Week: SEC, Binance and CoinSquare Among Major Newsmakers appeared first on Coingape.
Source: CoinGape