US SEC does not approve proposed rule for listing, VanEck bitcoin trust shares traded on Reuters

Author: Katanga Johnson

(Reuters) – The U.S. Securities and Exchange Commission (SEC) on Friday rejected a listing of rules that would allow VanEck to trade bitcoin (ETFs) and allow trading.

In March, the Cboe BZX Exchange, Inc. introduced a proposed rule change on the VanEck Trust’s list of shares and trading in accordance with the BZX standard.

“The Commission applies the same standard used in its orders to the previous proposals for listing bitcoin-based commodity trusts and bitcoin-based trust-issued receipts – which should be designed to prevent fraudulent and manipulative actions and practices,” the SEC said in its report. order.

“The commission concludes that BZX has not fulfilled its burden.”

The SEC’s move comes after the regulator decided twice whether to approve an application.

Analysts say the regulator is concerned that it does not have adequate oversight of cryptocurrencies to ensure there are adequate investor protections.

Any entity that requires changes in the rules related to the marketing of a derivative product must agree to enter into a custody-sharing agreement with the markets that trade in the underlying assets.

This allows the agency to “obtain the information necessary to detect, investigate, and prevent fraud and market manipulation, as well as violations of applicable exchange rules and applicable federal securities laws,” the SEC said in its order.

SEC President Gary Gensler may consider adopting a bitcoin ETF in the future to take on the cryptocurrency in general, as it would allow analysts to get exposure without having to invest directly in financial institutions and retailers.

When VanEck presented its ETF proposal in late 2020, Cboe BZX agreed to act as VanEck’s exchange partner earlier this year.