The Commission on securities and exchange Commission (SEC) again rejected the request of the investors Cameron and Tyler Winklevoss (Cameron and Tyler Winklevoss) for registration of the exchange-traded Fund (ETF).

For the first time, the SEC rejected the request to change the rules of the exchange, Bats BZX last March. And although some time later, Bats filed a petition for review of that decision, triggering another wave of comments about the readiness of the Agency to approve a cryptocurrency exchange traded product, however, the SEC did not give her the “green light”. Judging by the new waiver during the year the Commission on securities and exchange Commission has not changed its opinion.

However, the Board noted that this decision is not due to the fact that the SEC is opposed to cryptocurrencies and the blockchain, but rather with an unsatisfactory structure of the submitted proposal.

“Although the Commission does not approve the proposed rule change, we stress that this refusal is not based on ratings of usefulness of bitcoin or blockchain technology as a whole as innovation or investment. It probably is that the Commission does not approve the rule change proposed BZX. The fact that it does not fully meet the requirements of article 6(B)(5) of the exchange Act, particularly the requirement that the rules helped to prevent fraud and manipulation,” he explained in SEC.

Thus, the SEC again did not rule out the possibility of approval of the ETF in the future, noting that “over time regulated bitcoin markets can continue to evolve.”

“For example, existing or new markets, futures bitcoin can reach a considerable size, and the exchange involved in the listing of ETP, will be able to demonstrate their ability to address the risks of fraud and manipulation under the proposed rule change, through the exchange of information on ongoing supervision regulated market of considerable size related to bitcoin, and, if necessary, with spot markets for bitcoin derivatives.”

If that happens, the Commission might examine the question of whether the exchange traded product based on bitcoin to meet the requirements of the exchange Act.

Note that the decision of the SEC caused a decline in prices of bitcoin from $ 8300 price dropped to $ 7973 soon after the arrival of the news of the rejection.

It is noteworthy that at the end of a document published by the SEC expressed concern that bitcoin is susceptible to manipulation. As argument, the Commission cited a recent study which claimed that USDT tied to the dollar stablecoin controlled Tether, was used to support the price of bitcoin during market downturns.

“The Commission notes that recent academic research suggests that the price of bitcoin is susceptible to manipulation through the activities on trading venues. In a recent academic papers have dealt with the question of whether the issue of new tokens Tether (cryptocurrency, which is allegedly supported by the US dollar) demand from investors or used in a scheme to profit from higher prices for cryptocurrencies”.

It is worth noting that SEC Commissioner Hester pierce (Hester Peirce) has publicly opposed this decision, stating that it believes that the proposed rule change meets the statutory standard, the Commission “must allow BZX to be listing and start trading exchange-traded product based on bitcoin (ETP)”.

Pearce added that the increase in institutional participation “will eliminate many concerns of the Commission in relation to the bitcoin market, which lie at the basis of its disagreement with the opening of the ETF”. She also stressed that this step can be interpreted in a broader context as the disapproval of the innovations that, in turn, can lead to consequences far beyond the fate of bitcoin ETP.

We will remind that this week the SEC also deferred the decision on registration of five more bitcoin ETF.

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