SEC Rejects Two Spot Bitcoin ETFs Over Poor Fraud Controls

SEC Rejects Two Spot Bitcoin ETFs

The US Securities and Exchange Commission has rejected two spot-bitcoin exchange-traded funds from NYDIG and Global X, citing the lack of transparency and fraud controls.

The agency also based its ground for rejection on the lack of Surveillance-sharing agreements and the inadequate capacity to control bad actors in the sector.

The regulator stated that it declined the request for policy change concerning the NYDIG order. It concluded that the NYSE Arca does not fit the criteria consistent with the provisions of the Exchange Act Section 6(b) (5).

The cited policy requires that national securities exchange guidelines prevent fraud and protect investor interests.

SEC recently moved to allow the listing of bitcoin futures ETFs in an unprecedented move in the US market. The commission has also approved proposed ETF products backed by stocks and cryptocurrency-related firms, including miners.

Source: The Block

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