According to Jackson, it’s not a matter of if it gets approved, but when. The interview has yet to be published, but excerpts were provided by Drew Hinkes, Adjunct Professor at NYU Stern and NYU Law, who shared them via Twitter:
Commissioner Jackson in an interview to be published next weeks is optimistic that a “fund based on ” will eventually be approved, expresses concern about the proposed ETFs submitted to date.
— Drew Hinkes (@propelforward)
According to the shared excerpts, Jackson
“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so. Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard, and it should be. Once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt.”
A number of proposals have filed for approval, but none has yet got the green light.
Jay Clayton, chairman of the has he doesn’t see a pathway to a approval until concerns over market manipulation are addressed.
The has to date rejected at least 10 such proposals. Last August, it turned down seven filings from ProShares, Direxion and GraniteShares. A day later, though, the regulator said it would review the proposals. In July, the for the second time rejected Cameron and Tyler Winklevoss’ proposal to list a on the Bats BZX Exchange.
Discussing the Winklevoss’ proposal with Roll Call, Jackson said it was “not a difficult case,” but the risk of manipulation and harm to investors was “enormous,” while the market has a “very serious” liquidity problem.
He continued:
“I’m happy to say market participants have begun to come in with ideas. Whether or not we’re going to find one that really protects investors I don’t know, but I do know that that [Winklevoss] case wasn’t especially close.”
Another commissioner has been even more pragmatic over the possibility of a . Back in July, Hester Peirce said that the Winklevoss’ proposed rule change “satisfies the statutory standard and that we should permit BZX to list and trade this -based exchange-traded product (‘ETP’).”
Meanwhile, the quest for an -approved continues in 2019. At the start of the year, there was reported that Bitwise had filed another application after having been rejected by the in 2018. After initially the VanEck/SolidX proposal, Cboe the application a few days later.
It appears the CBOE and other institutions are not giving up on a , the Winklevoss twins also that they will keep pursuing approval of their COIN , particularly after Gemini become the first to pass SOC-2 examination.
Crypto Space is Becoming SEC Priority
In January, the put out a for 2019, and on the list are cryptos. We already reported that the ’s Office of Compliance Inspections and Examinations (OCIE) would head the effort. It will keep an eye out for such things as the ‘offer and , , and management of digital assets’.
Published at Sat, 09 Feb 2019 09:09:03 +0000
