The US Securities and Exchange Commission (SEC) has once again rejected a Bitcoin ETF application in the country despite recent encouraging signs on this front. The top securities and exchange regulator has now rejected a number of ETF applications in the recent past despite other countries in the neighbourhood including Canada allowing it in their own country.
The latest application from BitWise, a crypto exchange had been under deliberation for some time as the original application was filed in January this year. According to the official statement from the SEC, the NYSE Arca, it did not meet legal requirements to market manipulation and other potential illegal activities occurring under the new ETF. Particularly, the discussion has once again returned to the Exchange Act Section 6(b)(5) which the SEC claims is not fulfilled by the application.
As for BitWise, the organization frantically tried to prove its case and showed how consistent issues like market manipulation can be addressed with the right approach but nonetheless the ETF was not legalized by the SEC.
While other countries are progressing in launching ETFs, it is imperative to see that the SEC’s policy is still inflexible on this particular aspect of the crypto world.
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