SEC continues to delay decision on VanEck Bitcoin ETF and asks for public comment on proposal

The US Securities and Exchange Commission (SEC) has issued a policy that allows the public to comment on a proposed rule change on Bitcoin Exchange Traded Funds (ETFs) by asset managers.

According to a motion filed by the SEC on Wednesday, the regulator has yet to make a formal decision on whether to approve or reject VanEck’s Bitcoin ETF proposal, but “seeks and encourages interested parties to comment on the proposal.” In particular, the committee urges the public to consider whether they believe a Bitcoin ETF is vulnerable to tampering and is designed to prevent fraudulent and manipulative practices and practices.

The SEC also urged people to consider the “suitability of bitcoin as an underlying asset for a swap product” as well as the liquidity and transparency of the bitcoin market. Current regulations require national exchanges to “protect investors and the public interest”.

Anyone wishing to comment on a Bitcoin ETF proposal has up to 21 days after the guideline is posted in the federal register and 35 days after the instruction is posted to decline. The public can post comments through the SEC’s website, email, or mail.

VanEck filed a Bitcoin ETF application with the SEC in March after the company withdrew a similar application it filed in January in partnership with blockchain startup SolidX. The Commission extended the review period once from May 3rd to June 17th.

The SEC has the option to extend the time limits in increments of 45, 45, 90, and 60 days up to 240 days before making a final decision. However, under Section 19 (b) (2) (B) of the Securities Exchange Act of 1934, the Commission also has the power to “determine whether a proposed rule change should be rejected” prior to any deadline, as in the case of the case is a request for public opinion.

So far, no Bitcoin ETF has been approved by a regulatory authority in the United States. With the SEC repeatedly delaying proposals from VanEck, Valkyrie Digital Assets, and Fidelity Investments, many are no longer expecting early approval. However, Canadian officials have given the green light to many crypto ETFs this year, including offerings from hedge fund manager 3iQ, Purpose Investments, Evolve Funds Group and CI Global Asset Management.

Annie

According to Cointelegraph

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