Breaking: SEC Is Reviewing The Nine Bitcoin-Backed ETF Denials
The Bitcoin and crypto-backed ETF saga has continued, with the SEC recently revealing that it would be reconsidering nine proposals that were denied on August 23rd. As reported by Ethereum World News, nine ETF applications from ProShares, Direxion, and GraniteShares were rejected yesterday in a triple-blow to the stomachs of crypto investors, with the SEC citing concerns of manipulation and a lack of “significant size” markets to back up BTC’s spot price.
However, with a recent development pointed out by CoinDesk, the U.S. Securities and Exchange Commission will be “reviewing” the disapproval orders, in a so-called “staying” process.
BREAKING: The U.S. Securities and Exchange Commission says it will "review" Wednesday's rejection orders for 9 bitcoin ETFs. Pending the outcome of the review, the three August 22 orders have been stayed. Story to come.— CoinDesk (@coindesk) August 23, 2018
SEC Commissioner Hester Peirce, crypto’s ‘inside woman’ in legacy systems, announced that yesterday’s orders would be reviewed in accordance with Rule 431 of the Commission’s Rules of Practice.
Yesterday's staff orders disapproving SRO rules related to a number of bitcoin ETFs are stayed pending Commission review. See, for example: https://t.co/Ky9Z8t1E4q— Hester Peirce (@HesterPeirce) August 23, 2018
Simplifying the explanation of the rule, Pierce, who has been dubbed ‘CryptoMom’ by the community, noted that the Commision may often review actions taken by its staff. Elaborating, the SEC Commissioner wrote:
In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.
With this move, Hester Peirce has cemented herself as somewhat of a crypto proponent, as she vehemently spoke out against the SEC’s recent decision to disapprove the Winklevoss Twins-backed ETF for the second time.
Crypto Market Surges On SEC Update
As a result of this new development, the crypto market saw a quick surge to the upside, with Bitcoin quickly seeing a $150 gain, from $6,400 to $6,500 within a matter of minutes.
Altcoins followed Bitcoin, and are currently gains that are near-identical to the market leader. As it stands, Bitcoin has found a place to stand at $6,510 and is up by approximately 3% in the past 24 hours. While this bout of positive price action is welcome, some fear that this will not be enough of a move to bring the crypto market back into a state of “FOMO.”
This is a developing story, so Ethereum World News will be sure to keep you updated.
Photo by Joakim Honkasalo on Unsplash