SEC Further Delays Cryptocurrencies ETF Classification
After making a public statement, the SEC announced that five cryptocurrencies would have their ETF classification would be delayed after Direxion filed five different BTC exchange-traded fund submissions.
The US Securities and Exchange Commission stated that on the 4th of July, NYSE Arca sent in an application and suggest a change in regulations and rules to allow ETFs the correct approval to be listed and traded as per the application. The SEC replied by saying that more time was required to properly research and assess the situation at hand as a means of ensuring the correct standards were in place.
Eduardo Aleman, the secretary assistant, signed the delay by the SEC in which the government watchdog’s direct mention of several worries and whether or not any changes would be in compliance with the SEC act and its rules. The signed order states that any national currencies deemed securities must comply and be designed with several security measures to ensure no fraudulent activities occur, allow investors to protect themselves and provide fair trading principals.
No Decision Yet
According to the SEC Act, a decision on the submitted application must be tended to within 180 days of its proposal. While it was meant to be announced on the 23rd of July since the original notice was submitted on the 24th of January.
The SEC then said that an extension of 60 days was implemented as a means of providing more time for further research and analysis of the submission prior to making any decision. In light of this, the decision and hearing have been pushed even further with plans to conduct the ruling on the 21st of September.
As the SEC has stated, more time was needed to make a decision on whether the ETF classification would pass or be denied to take a closer look and consider the application and its rule changing proposal. The SEC further states that the 21st of September is the set date as it lands 240 days since the 24th of Jan. Earlier reports also stated that the watchdog addressed the public last month for comments on the matter and another submission of a BTC exchange-traded fund listing.