The United States Securities and Exchange Commission (SEC) ordered a rule change to allow the investment manager VanEck to create a spot Bitcoin Trust on March 10. Commissioner Mark Uyeda joined his colleague Hester Peirce to release a statement criticizing the commission’s decision not to approve it. listing and trading of financial products.
The commissioner noted that the SEC has denied every application for a Bitcoin (BTC) trust that has been submitted, nearly 20 in the past six years. The decision regarding VanEck “repeats the analysis that the Commission provides in each of these new orders,” he said, but:
“In our view, the Commission is using a different set of gates than it used—and still uses—for other types of commodity-based ETPs to keep these bitcoin ETPs off the exchanges we regulate.”
The agency said there are no regulated markets and therefore VanEck does not have “comprehensive oversight sharing agreements with regulated markets of significant size related to bitcoin spot.” While it is a requirement that applies to all exchange products [ETPs]:
“It is also clear that the Commission used a unique definition of ‘important’ in the analysis of ETP bitcoin point filings.”
The commissioner said the SEC has not required any connection between the spot and the futures market to be shown for other commodity-based ETPs and “important” apparently applies to the liquidity and volume of the trading venue in cases that do not involve Bitcoin. The SEC is required by law to explain the change in policy for approving commodity-based ETPs, they added.
Related: Here’s why the SEC keeps rejecting spot Bitcoin ETF applications
VanEck has financial products related to Bitcoin. It began efforts to obtain approval for products related to the dot in 2017. The SEC delayed making a decision on the company’s current – third – application for the dot ETP for several months.
Bull and Bear Arguments for Bitcoin – February 2023: https://t.co/hSVCdzoUD5
– FENERATOR Capital (@feneratorcom) March 5, 2023
Uyeda, who was nominated by US President Joe Biden and appointed to his post in June, issued a statement regarding the SEC’s proposed detention rules in February when he said, “This approach to detention appears to mask a policy decision to block access to crypto as an asset class. .