SEC rejects proposal of Wilshire Phoenix Bitcoin ETF

This week, the SEC rejects the Bitcoin ETF proposal submitted by Wilshire Phoenix. The decision was justified by concerns about market manipulation and lack of supervisory sharing agreements.

SEC Commissioner Hester Peirce, known as “Crypto Mom”, publicly voiced his disagreement over the decision.

In his statement, Peirce explained:

“The SEC again rejected a proposed rule change that would have given US investors access to Bitcoin through a listed product and traded on a regulated securities exchange, which is under the commission’s regulatory authority. This series of rejections leads me to the conclusion that this Commission does not want to approve the listing of any product that would provide market access for Bitcoin and that no deposit will meet the ever-changing standards that this Commission insists on applying for products associated with Bitcoin – and only for them. “

SEC rejects proposal of Wilshire Phoenix Bitcoin ETF

Explaining the reasons behind its decision Wednesday, the SEC said the company was unable to provide sufficient evidence that it could protect itself from “fraudulent and manipulative acts and practices” on the Bitcoin market, to “protect investors and interest. public”.

The SEC said:

“The Commission must reject a rule change proposed by a national stock exchange if it does not find that the proposed change is in accordance with the applicable requirements of the Stock Exchange Law. This includes the requirement in section 6 (b) (5) which provides that a national securities exchange must have mechanisms designed to prevent fraudulent and manipulative acts and practices. “

NYSE Arca has introduced a rule change that would have allowed the listing and trading of a Bitcoin-based ETF and bonds issued by Wilshire Phoenix. The proposal included both US Treasury bonds and Bitcoin to automatically rebalance the value of the ETF during BTC price volatility periods.

The SEC has so far rejected at least nine previous Bitcoin ETF applications, including Bitwise Asset Management, VanEck / SolidX and Direxion proposals. Currently, the SEC still needs to evaluate two similar proposals, from Kryptoin and Crescent Crypto.