U.S. Attorney: Jay Clayton SEC will never approve a Bitcoin ETF

The United States Commission on Security and Exchange (SEC) under the leadership of President Jay Clayton will never approve a publicly traded fund (ETF) of bitcoin, believes Jake Chervinsky of Kobre & Kim, LLP, based in New York.

The general advisor noted that Clayton and his team see Bitcoin as an asset that remains “susceptible to manipulation and surveillance agreements to share.” So no matter how the ETF sponsors decorate their applications, SEC officials will continue to reject them under the pretext of the Exchange Law.

     “Clayton’s term ends June 5, 2021, but it could last another 18 months,” Chervinsky added. “Usually, we would see new ETF proposals submitted immediately after the rejection, but it might be time to take a year off.”

The statements came just after the SEC rejected the Bitcoin ETF application submitted by Bitwise Asset Management in association with NYSE Arca. The order reiterated that both NYSE Arca, in particular, did not respond to their concerns related to price manipulation or other illegal activities. It reads in the statement:

“The Commission disapproves of this proposed rule change because, as discussed below, NYSE Arca has not fulfilled its burden under the Commission’s Exchange Law and Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Section 6 (b) of the Exchange Law (5) and, in particular, the requirement that the rules of a national stock exchange be ‘designed to avoid fraudulent and manipulative acts and practices’ ”.

    No event

The latest SEC decision on the Bitcoin ETF affirmed its conservative approach to emerging assets. The move left a large part of cryptocurrency enthusiasts disappointed, and many asked for Hester Peirce to be named as the next president. The Republican SEC commissioner was only among the five who supported a Bitcoin ETF.

Meanwhile, the other section of the cryptocurrency community saw the news as a non-event, something that does not affect the performance of bitcoin as a technology and invertible asset. Market analyst Alex Krüger exemplified it with the unperturbed performance of bitcoin prices after ETF’s rejection.

However, an approved Bitcoin ETF could have opened an investor gate to bitcoin. A study by Tom Alford in TotalCrypto.io predicted a 500 percent price rebound in the bitcoin market after ETF approval after analyzing the gold market.

“ETF started the biggest bullfight in the history of gold. Prices rose from just $ 331.60 per ounce to a maximum of $ 1,917.90. That is an incredible 478% increase in price after the launch of the gold ETF “Alford reasoned.

Incorrect application of Bitcoin ETF

Rptr45 in extensive information showed how Bitwise shot itself in the foot after launching its famous “Real 10” report. Published earlier this year, the study noted that 95 percent of the volume of the bitcoin spot market is false and is open to price manipulation.

     “There is a good chance that any new application will demonstrate that Bitwise stated that its 95% study is INCORRECT before they can feel comfortable that the underlying spot market is not subject to manipulation and seeks to approve an ETF,” Rptr45 wrote.

They even managed to worry the SEC with their letters. “The charts and graphs prepared present a particular view of their analysis that varies according to the choices made, including the scale. For example, Sponsor provides a linear graph of CME bitcoin futures.

Reference: newsbtc.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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