THELOGICALINDIAN - On Friday Bitcoincom appear on the cardinal by the US Securities and Exchange Commission SEC abnegation Bats BZX Exchanges proposed aphorism change to account and barter Coin ETF In this commodity we appraise the acumen abaft the SECs accommodation and the Bitcoin communitys reactions
Also read: SEC Rejects Rule Change for Bitcoin ETF
Reasons for SEC’s Rejection
The SEC explained how the proposed aphorism change was banned because the angle was not constant with “Section 6(b)(5) of the Barter Act, which requires, amid added things, that the rules of a civic balance barter be advised to anticipate counterfeit and artful acts and practices and to assure investors and the accessible interest”.
In adjustment to be constant with the Exchange Act, the SEC explained that:
However, Friday’s Order states that:
Since bitcoin markets are abundantly unregulated, the SEC concludes that Bats BZX Exchange does not accept and would not be able to accept the blazon of surveillance-sharing acceding which all added 
SEC-approved commodity-trust ETPs (exchange-traded-products) have.
The Commission claims that these agreements advice abode “concerns about the abeyant for counterfeit or artful acts and practices in this market”. Without them, the angle would not be constant with Section 6(b)(5) of the Exchange Act.
‘Inconsequential’ Comment Letters
According to the Commission, 59 animadversion belletrist were accustomed on this proposed aphorism change as of March 8. The 38-page Order dedicates 15 pages to discussions of comments accustomed by the SEC, aggregate into comments regarding; the common bazaar for bitcoin, the Gemini exchange, and the derivatives markets for bitcoin.
One commenter, Mark T. Williams, contrarily accepted as “Professor Bitcorn” in the Bitcoin community, is a affiliate of the Boston University adroitness specializing in banking, basic markets and article trading risk. The assistant is abominable for about predicting in backward 2013 that Bitcoin will abort and blast to beneath $10 by June 2014. He has back doubled-down on his affirmation and stands by his assessment today that the Bitcoin ‘bubble’ will absolutely collapse eventually, and insists that he will be vindicated.
For some reason, the Commission cited Williams eight times in its ruling, so his comments stood out amid others. He told the SEC that “There are several axiological flaws that accomplish Bitcoin a alarming asset chic to force into an ETF structure”. He additionally approved to argue the Commission to blame the ETF, citation the problems of “shallow barter volume, acute hoarding, low liquidity, aggressive amount volatility, a all-around web of able brazier boutique exchanges, aerial defalcation accident and colossal acknowledgment to trading in countries area there is no authoritative oversight, such as China”.
However, the Commission wrote that: “Ultimately, however, comments on these capacity do not buck on the base for the Commission’s accommodation to blame the proposal”.
Reactions from the Community
The Bitcoin association went agrarian on amusing media afterwards the decision. The declared affidavit for accusatory the proposed aphorism change for Coin ETF did not bell able-bodied with the community. Not all were aghast by the outcome, however.
Famous apostle Andreas Antonopoulos tweeted: “The ETF was denied because bitcoin can’t be regulated, can’t be surveilled. Feature, not bug”. Another of his tweets says:
Bitgo CTO Ben Davenport additionally took to Twitter with his interpretation of the event. “SEC: bitcoin charge be traded on adapted markets to be traded on adapted markets”, he tweeted.
Senior Advisor at MIT Media Lab, Michael Casey, tweeted: “SEC bounce of #Bitcoin ETF agency the amplitude charcoal interesting. For now, BTC stays in the area of disobedience. Where addition happens”.
There is Still Hope for Future Bitcoin ETFs
While the SEC alone the proposed aphorism change for Coin ETF, it is not all hopeless for added Bitcoin ETFs. The Commission wrote:
The abutting Bitcoin ETF up for application by the Commission is Solidx Bitcoin Trust whose borderline is March 30. The third one in band is Barry Silbert’s Bitcoin Investment Trust whose borderline is ancient in October.
What do you anticipate of the SEC’s affidavit for accusatory the proposed aphorism change for Coin ETF? Let us apperceive in the comments area below.
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