Jay Claytons SEC Will Never Approve a Bitcoin ETF: US Counsel

The US Security and Exchange Commission (SEC) under the leadership of Chairman Jay Clayton will never approve a bitcoin exchange-traded fund (ETF), believes Jake Chervinsky of New York-based Kobre & Kim, LLP.

The general counsel noted that Clayton and his team look at bitcoin as an asset that remains susceptible to manipulation and surveillance-sharing agreements. So no matter how the ETF backers decorate their applications, the SEC officials would continue to reject them under the guise of the Exchange Act.

Claytons term ends on June 5, 2021, but could go another 18 months longer, added Chervinsky. Usually, wed see new ETF proposals filed immediately after rejection, but it might be time to take a year off.

The statements came around right after the SEC rejected the Bitcoin ETF application filed by Bitwise Asset Management in partnership with NYSE Arca. The order reiterated that both NYSE Arca, in particular, failed to respond to their concerns related to price manipulation or other illegal activities. It read:

TheCommission is disapproving this proposed rule change because, as discussed below, NYSE Arcahas not met its burden under the Exchange Act and the Commissions Rules of Practice todemonstrate that its proposal is consistent with the requirements of Exchange Act Section6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.


SECs latest decision on Bitcoin ETF asserted its conservative approach towards emerging assets. The move left a large portion of cryptocurrency enthusiasts disappointed, with many calling on to appoint Hester Peirce as the next chairman. The republican SEC commissioner was only among the five to have supported a Bitcoin ETF.

Meanwhile, the other section of the cryptocurrency community saw the news as a non-event something that does not impact the performance of bitcoin as both technology and investable asset. Market analyst Alex Kr?ger exemplifiedit with bitcoins unfazed price performance after the ETF rejection.

Nevertheless, an approved Bitcoin ETF could have opened a floodgate of investors towards bitcoin. A study conducted by Tom Alford at TotalCrypto.iopredicted a 500 percent price rally in the bitcoin market upon an ETF approval after analyzing the gold market.

ETF kick-started the biggest bull run in golds history. Prices rose from just $331.60 per ounce to a high of $1,917.90. Thats an incredible 478% increase in price after the gold ETF was launched, reasoned Alford.

Bad Bitcoin ETF Application

Rptr45 in a long thread showed how Bitwise shot itself in the foot after releasing its renowned Real 10 report. Published earlier this year, the study noted that 95 percent of bitcoin spot market volume is fake and is open to price manipulation.

Theres a good chance any new application must prove what Bitwise stated with their 95% study is WRONG before they can even get them comfortable that the underlying spot market isnt subject to manipulation and look to approve an ETF, wrote Rptr45.

The post Jay Claytons SEC Will Never Approve a Bitcoin ETF: US Counsel appeared first on NewsBTC.

10.10.2019 / 07:40 42
Latest Bitcoin Drop Proves SECs ETF Concerns: Chervinsky Latest Bitcoin Drop Proves SECs ETF
The US Securities and Exchange Commission (SEC) is right about their decision to reject bitcoin exchange-traded funds, believes Jake Chervinsky of
Bitcoin ETF Approval Chances Down to 10%, Says Legal Expert Bitcoin ETF Approval Chances Down to
Following last weeks delay of the SEC to decide on whether to approve or not the proposed, commodity-backed bitcoin ETF proposal of VanEck and
Does VanEck Bitcoin ETF Address the Concerns of SEC Chairman on Manipulation? Does VanEck Bitcoin ETF Address the
CCN is expanding. Are you our next full-time journalist from the West Coast USA? Send us your CV and examples here. Earlier this week, US Securities
Bitcoin ETF May Not Pass Due to Risk of Manipulation, Says SEC Chairman Bitcoin ETF May Not Pass Due to Risk
The head of the US Securities and Exchange Commission Jay Clayton holds that the lack of safeguards for investors might roadblock the approval of a
SEC: No Rush to Approve Crypto ETFs Due to Lingering Concerns SEC: No Rush to Approve Crypto ETFs Due
Speaking to reporters at conference yesterday, Securities and Exchange Commission Chairman Jay Clayton said he wanted to see better market
NY Crypto Exchange Report Bearish for Bitcoin ETF Plans NY Crypto Exchange Report Bearish for
A new report drafted by the New York attorney generals office (OAG) alleges that a significant number of cryptocurrency exchanges may be vulnerable
Comments (0)
Add a comment
Comment on