SEC Possesses No Authority In ETF Rejection
According to a commissioner within the United States SEC, she states that the agency has no authority in rejecting a BTC Exchange-traded fund strictly due to Bitcoin itself. Additionally, she says that the commission should be attempting at providing solutions for introducing an ETF to markets instead of nit-picking at Bitcoin itself.
Hester Peirce, a commissioner for the US SEC has spoken up about the Commissions latest rejection of a BTC ETF proposal and commented on how the agency holds no jurisdiction in terms of studying the main asset in considering an approval or rejection.
As Hester voted in favor of approving the ETF, three others voted to reject it. According to Peirce, the other members stated that several reasons contributed to the decision of rejection in terms of studying the underlying asset instead of paying attention to the bigger picture. As she states, the agency took advantage of no rightful authority in rejecting the ETF and its market and instead focusing on Bitcoin.
In an interview, the commissioner was asked a question regarding Bitcoin and price manipulation and how the financial watchdog had no authority in rejecting the proposal through sole inspection of BTC in which the Peirce confirmed her opinion. She then compared BTC to other assets like gold and stated that it was not within the agency’s power to the explore how they work but instead should prioritize attention towards the involved markets trading these securities, aka the rejected ETF.
In light of the rejection but the SEC, Hester Peirce explain that other commissioners dove into great research detail and analysis to determine that the proposal did not fully comply with the Securities trading act although she did explain that the SEC had absolutely no reason to reject the latest ETF proposal and if up to her, it would have been approved.
As of now, the SEC is taking the possible approval of the listing of Solidx BTC shares distributed by Vaneck Solidx BTC Trust. This new application suggesting the change was released within the FR on the 2nd of July. According to the agency, the SEC team will decide on this specific change and any other proposals of a change in rules. The maximum action window is set at 45 days following the day of release with the register.
Additionally, the SEC may take up to 240 days to make a formal decision and in violating any scheduled day for a decision, according to the law of Exchange, the asset will be considered as an approved proposal by the SEC.