Bitcoin

Gary

<p>The post <a rel="nofollow" href="https://coinpedia.org/news/sec-could-prepare-fresh-reasons-to-deny-bitcoin-etfs-bloomberg-analyst-elliott-z-stein/">SEC Could Prepare Fresh Reasons to Deny Bitcoin ETFs, Says Bloomberg Analyst</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The U.S. <a href="https://coinpedia.org/news/crypto-twitter-speculates-will-judge-torres-deny-secs-motion-in-ripple-lawsuit/">Securities and Exchange Commission (SEC)</a> is looking for new ways to justify its continued rejection of spot Bitcoin exchange-traded funds (ETFs), according to Elliott Z. Stein, a litigation analyst at Bloomberg Intelligence.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">'The SEC moving on to a new reason to deny spot ETFs (such as custody) could open them up to new arbitrary and capricious lawsuits bc they'll be introducing a test that hasn't been applied to any other product.' – <a href="https://twitter.com/NYCStein?ref_src=twsrc%5Etfw">@NYCStein</a> (in our webinar which isnt called a webinar)</p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1699805826674721042?ref_src=twsrc%5Etfw">September 7, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 id="secs-stance-over-the-years" data-name="secs-stance-over-the-years" class="wp-block-heading"><strong>SEC’s</strong> Stance Over the Years</h2> 
<p>Traditionally, the SEC has cited concerns about the susceptibility of an unregulated crypto market to manipulation as the foundation for its rejections. However, the recent victory by Grayscale may have increased the chances of the “SEC finally approving one or more spot Bitcoin ETF applications.” It’s important to note that the federal judge did not compel the SEC to approve a spot Bitcoin ETF but rather urged the regulator to reevaluate its reasons for rejecting Grayscale.</p> 
<p>Considering these developments, Stein raises a cautionary flag, expressing apprehension that the SEC’s pivot toward new grounds for denial, such as custody-related issues, could inadvertently invite additional legal challenges.</p> 
<p>Read More: <a href="https://coinpedia.org/news/bitcoin-etf-race-changing-course-in-2024-analyst-james-seyffart-bold-forecast/">Bitcoin ETF Approval: SEC’s Position Weakens, 75% Chance in 2023</a></p> 
<h2 id="gensler-must-decide" data-name="gensler-must-decide" class="wp-block-heading"><strong>Gensler</strong> Must Decide </h2> 
<p>Gary Gensler, leading the SEC, now faces crucial decisions amidst ongoing legal battles surrounding Bitcoin ETFs. The implications are substantial, not only for cryptocurrencies but also for the financial sector at large.</p> 
<p><strong>Options on the Table</strong></p> 
<p>The SEC has several options at hand:</p> 
<ol> 
 <li><strong>Contesting the Court Decision:</strong> One option is to challenge the recent court ruling. However, certain aspects of the ruling make this choice less appealing.</li> 
 <li><strong>Approving Pending Applications:</strong> The SEC can also approve one or more of the nine pending spot Bitcoin ETF applications, including submissions from major industry players like Ark, Bitwise, and BlackRock. The regulator operates under a strict deadline, with the first decision due by January 10, 2024.</li> 
 <li><strong>Seeking New Denial Grounds:</strong> Alternatively, the SEC may seek fresh reasons to reject Bitcoin ETFs, though this could lead to further legal disputes.</li> 
</ol> 
<p>Also: <a href="https://coinpedia.org/news/could-bitcoin-etfs-be-bad-news-for-crypto-exchanges-bloomberg-analyst-thinks-so/">Will Bitcoin ETFs Kill Crypto Exchanges? Bloomberg Analyst Thinks So!</a></p> 
<p>The SEC’s new search for justification could be seen as a sign that it is still not convinced about the safety of spot Bitcoin ETFs. However, it could also be a way for the regulator to buy itself more time to make a decision.</p> 
<p>Only time will tell what the SEC will ultimately decide. But in the meantime, the cryptocurrency market is watching closely.</p>

SEC Could Prepare Fresh Reasons to Deny Bitcoin ETFs, Says Bloomberg Analyst

Table of Contents

CoinPedia News

Other articles published on Sep 8, 2023

Haechi Labs Joins Hands with Oasys for Entry into Japanese Market

Today in Crypto: Coinbase is in 'Final Stages of Selecting Its EU Hub Location', Six Projects Get...

SEC Approves Nasdaq's AI Trading Advancement

FTC Cracks Down on DeFi Protocols: 0x, Opyn, and Deridex Face Charges

Binance’s Latest Proof-of-Reserve Report Under Scrutiny for Transparency

XRP Community Backs LBRY In Appeal Against US SEC

Join our free newsletter for daily crypto updates!