Just short after the US Securities and Exchange Commission snubbed Bitcoin in its Regulatory Agenda 2021, the regulator further delayed their decision on the VanEck Bitcoin ETF application. The first U.S. Bitcoin ETF seems to be taking the backseat for now.
The SEC has a history of delaying any decision regarding Bitcoin ETFs. The regulatory hurdles and past indefinite rejections have shattered hopes of a quick SEC approval. This to the frustration of many crypto enthusiasts.
In what is the most recent development, the agency further delayed passing its judgment on the VanEck Bitcoin Trust.
On most proposals, the SEC delivers a decision within a 45-day window. However, to date, the regulator seems to be stretching the window to the maximum and has been taking the upper cap of 240 days to review most of the Bitcoin ETF applications prior to rejecting them.
Now the SEC has extended its review period for VanEck’s ETF by a second term of 45 days. Back in April, the SEC confirmed it needed “sufficient time” to evaluate the aforementioned proposal and added the first 45-day extension.
The review period extension is not the only curveball the SEC is throwing.
Following VanEck’s application it is opening a public consultation. Interested parties will be asked to answer questions on their views on how vulnerable the ETF would be to “market manipulation” and whether or not the regulatory ecosystem has “changed” since 2016.
Other questions involve views of the “transparency” of Bitcoin and their standpoint on the “size and regulation” of CME’s Bitcoin futures contracts.
The SEC has time and again highlighted its concerns over fraud and manipulation in the BTC markets. Additionally, as the SEC has no control over cryptocurrency exchanges, the regulator believes its “investor protection” obligation gets obstructed. The regulator has time and again stressed its concerns over manipulation and other means of fraud in Bitcoin markets.
So far, under fresh leadership of Gary Gensler, the SEC has not yet lived up to the crypto community and their expectations. A more crypto-friendly breeze over the crypto industry is yet to come out.
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