New SEC Commissioner Briefed About Bitcoin-Based ETF In October Meeting

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New SEC Commissioner Discussed About Bitcoin-Based ETF In October Meeting

Earlier this month, the new commissioner with the U.S. Securities and Exchange Commission held a meeting with an envoy from blockchain startup firm SolidX and money manager VanEck, over Bitcoin-based exchange-traded fund (ETF) talks.

Elad Roisman, the commissioner who joined the office in September, had a word with Dimitri Nemirovsky and Dan Gallancy from SolidX, Adam Phillips from VanEck, and Kyle Murray as well as Laura Morrison from Cboe regarding a proposed transition by companies submitted as a part of the Bitcoin ETF initiative. The information pertaining to the talks were released in a report on October 9.

The representatives of ETF shared almost the same discussion to Roisman, which they had previously presented to the SEC. During the talk, they noted that if the proposed terms are approved the share price of ETF is expected to reach about $200,000, or 25 Bitcoin per share. The Bitcoin holding trust will also provide with an insurance against any loss due to theft or the loss of the Bitcoins in general.

However, it is important to note here that although the presentation or discussion with the commissioner addressed concerns by the SEC in a most precise and concise manner, a similar presentation was rejected by the SEC in March 2017. It is also a matter of concern that there are other regulated derivatives markets for space.

Ever since the latest meeting with the SEC, the regulator has moved to make an ultimate decision on the proposal. In September, the agency issued an order launching deeds to decide whether to endorse or reject the proposal. The regulatory bodies have welcomed comments from the public on the proposal until October 17. The public members have a time till October 31 to file any change or show to be false any argument in the proposal. After October 31, the proposal will be put in the final level of scrutiny under the regulatory bodies and may be issued officially.

A memorandum highlighting the arguments of the concerned parties has been issued. The argument comprehensively addresses the basis on which the regulator has disapproved SolidX’s previous ETF application in 2017. The memorandum also highlights the perceived cause of failure as in line with the section6 (b) (5) of the Securities Exchange Act which primarily focuses on treachery and manipulative practices.

At that time, the SEC said that previously the commodity-trust exchange-traded products or ETPs were approved on the basis of establishment, significance, market regulations and the future. The memorandum has countered the bases stating that various Commodity Futures and Exchange Commission (CFTC)-regulated Bitcoin are leaving for Bitcoin, particularly on sturdy U.S. exchanges CBOE and CME.

According to an SEC report in August, the regulator rejected as many as nine applications to trade and list different Bitcoin ETFs from three different applicants for reasons pertaining limited or insufficient application of the market regulations to the most significant market size.