Even though the cryptocurrency world was disappointed about the ETF rejection, it appears the fight is not over yet. Bats BZX Exchange is looking to have the SEC’s decision reviewed and potentially overturned. This is quite a significant development that could This does not mean the Bats exchange will be successful in their endeavor, but it is nice to see they didn’t give up just yet.
Reviewing The SEC Bitcoin ETF Rejection
The motion to have the SEC’s decision reviewed was filed on March 17th. yet only came to light earlier this morning. This move by the Bats BZX Exchange marks the first intervention by an entity involved in the Winklevoss Bitcoin Trust plans to have the rejection reviewed. Considering it took the SEC three years to come to a decision, it would appear there is some reason to challenge their decision.
To be more specific, the SEC decreed the bitcoin market is far too immature to be listed on the Bats exchange. The SEC feels the lack of regulatory oversight and potential risk for fraud are enough reason not to make this listing possible. Those statements seem rather controversial, though, as bitcoin has faced mounting scrutiny over the past few years. It will be interesting to see if this appeal by Bats will have any impact on the decision, although it seems unlikely the SEC will change their mind all of a sudden.
It is good to see the company go through the official channels to file an appeal, though. Under rule 430(b)(1), it also states how appealing a SEC decision may affect the prior action taken by the governmental body. Filing additional documents will be the first step for Bats, although it is unclear how long this process may take. Once again, it is highly unlikely this appeal will change anything, as the SEC is not keen on bitcoin nor will they ever be.
Additionally, it is worth noting the SEC is still in a position where they can decline the request for review. This seems to be the most likely outcome right now, as the SEC will have no interest in revisiting the bitcoin ETF topic again anytime soon. Moreover, there seems to be no apparent reason for them to drag out this process any longer than need be. While a bitcoin ETF would be a great tool to bring cryptocurrency to the mainstream, it is by no means required to make bitcoin successful moving forward.
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