Coin Cong view: is bitcoin ETF doomed to fail?

One of the most controversial issues surrounding encryption currency this year bitcoin ETF – their potential and the U.S. Securities and Exchange Commission (SEC) has repeatedly denied bitcoin ETF proposal.

What is on the table while the proposal is the most hot, is most likely to be approved by the U.S. Securities and Exchange Commission proposal. It consists of VanEck encryption and fund management company launched SolidX Co submitted.

Many people expressed the hope that the approval of ETF crypto currency will be to reverse the current bear market “magic pill”. These weak close friends think, ETF will open the door for more investment, so as to boost prices. Therefore, every statement of the U.S. Securities and Exchange Commission should be cautious.

However, according to some experts, including securities lawyer and digital monetary expert Jake Chervinsky, may be denied. Yesterday on Twitter, Chervinsky in the form of 20 tweets neatly explains the delay of the SEC, and the upcoming February 2019 American Commission decided to put forward their views.

SEC encryption and the history of money

No one has accused the United States Securities and Exchange Commission has an easy job. After one of the most difficult in the history of the United States government during the great depression, the basic premise of the U.S. Securities and Exchange Commission is to create the basic premise of American consumers, has been to prevent this from happening again in the nature of American consumers. However, one might think that the surge in the workload of SEC arrived at the scene in absolute currency encryption. At present, the biggest decision of the U.S. Securities and Exchange Commission is a controversial decision VanEck / SolidX ETF. However, encryption currency has existed for a long time. The first major decision of the U.S. Securities and Exchange Commission will make money encryption and ICO occur in the month of 7 2017, it was announced that some coins are actually securities, and therefore subject to federal investment laws and regulations constraints. This ruling is in the now notorious encryption currency ICO (called “DAO”) occurred after the investigation. The DAO suffered a massive crack. Although most of the coins were ultimately recovered, but the damage is caused by ICO because the United States Securities and Exchange Commission note. In the DAO award, the U.S. Securities and Exchange Commission rejected the proposal of 9 different ETF from a variety of encryption currency exchange. Rejected people including CBOE, Direxion, GraniteShare and ProShares. In all 9 ruling, the U.S. Securities and Exchange Commission said that the exchange failed to meet the section 6 of the Exchange Act (b) (5) the requirements of the law, to prevent fraud and price manipulation as the center. In another encounter encryption currency, the U.S. Securities and Exchange Commission in September 2018 of two independent institutions – Asset Management Co (CAM) encryption and TokenLot filed a lawsuit to log a $one hundred thousand fine for the fine. CAM and TokenLot are found to be in violation of a number of securities law, fines and stop orders with their act of sympathy. In this latest ETF proposal, VanEck and SolidX have been encrypted currency exchange cooperation and exchange holding company CBOE, once again raised the encryption currency ETF status request. The provisions of the VanEck proposal, in cooperation with SolidX, a physical support bitcoin trust will be created. ETF will sell VanEck to SolidX by the sponsors. ETF will be listed on the Chicago stock exchange BZX exchange option. The proposal submitted for the first time in June 2018. The United States Securities and Exchange Commission announced that for the first time, delay the decision in August 7, 2018, citing the need for further examination. September issued another delay. Finally, in December 6, 2018, the U.S. Securities and Exchange Commission announced its decision to postpone the last time. Accept or reject the deadline ETF proposal is now February 27, 2018.

The ETF proposal is still facing challenges

VanEck / BTC core SolidX ETF proposal is a lot of hard work and dedication. However, although the proposal based on bitcoin itself, rather than the nine futures market before being rejected as the futures market, but the three sec time delay that its final major concerns. Recent delays with 18 complex questions about potential ETF. The most important SEC query of price manipulation and fraud concerns, which is trading sixth U. S. securities and Exchange Commission under the jurisdiction of the law (b) (5) the problem. “Trading law” this part also cited reasons for nine times before the refuse, including encryption and highly publicised giant Winklevoss twins proposal. This denial is handed down by the members, this is an important statement from one of the current most powerful financial regulators of the leaders. Part of the U.S. Securities and Exchange Commission’s attention not only effectively. In the encryption community, market manipulation, fraud, hacker attacks and other forms of illegal activities is a huge risk. In addition, it is a new form of currency. Therefore, no history or case used to search and check to seek the best practice. However, another imminent problem of the U.S. Securities and Exchange Commission is that it does not actually manage encryption currency exchange. The Commodity Futures Trading Commission (CFTC) has jurisdiction on this aspect of encryption. This means that the scope of the SEC is very serious. Therefore, the U.S. Securities and Exchange Commission in the ETF proposal for regulatory requirements sharing agreement is actually a good way to avoid the jurisdiction of the absence of encryption to the currency exchange co.. Only an open mechanism of the U.S. Securities and Exchange Commission for ETF is that bitcoin market inherent against fraud and manipulation. This statement is not only highly suspect, and the U.S. Securities and Exchange Commission earlier this year according to the argument of Winklevoss rejected the appeal. This shows evidence of safety they need than previously encountered in the exchange of more. Although the Chicago Board Options Exchange and SolidX have its existing regulatory sharing agreements and their bitcoin market strength and maturity position submitted a strong statement, but it may not be enough to meet the requirements of the U.S. Securities and exchange commission. Even the Chicago Board Options Exchange comments on the OTC and the current principal to principal transactions, if the parties can identify and supervise the safety and activity is based on the size of the transaction, or may not affect the U.S. Securities and exchange commission. Members of the U.S. Securities and Exchange Commission is human, they are always likely to worry about change. So far is that the lack of decision may need time to adjust to the new reality of encryption currency, although some traditional financial experts have high hopes, but the reality does not disappear. If this is the case, the U.S. Securities and Exchange Commission therefore decided to make the series of delay is a positive sign. The idea of ETF becomes more friendly, its openness may lead to VanEck / SolidX BTC ETF proposal approval. Sher Vince Ki different opinions, but the prediction of the U.S. Securities and Exchange Commission in February approved the proposal of the possibility of 10%. However, if the Chervinsky is correct, just like the Dumb and Dumber Jim Carrey, a 10% chance is still opportunity. Any familiar fickle money market encryption people know that, in this field, great changes may occur in a very short period of time. Therefore, in the United States Securities and Exchange Commission of the VanEck / SolidX decision in the case, only time will prove that today’s market potential and market decision may be a decision based on completely different from the two months after the decision based on market.

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