coinnounce.com
In yet another denial, the U.S. SEC has rejected Cboe BZX’s application for a rule change that would allow a BTC spot ETF to be approved. The financial regulator listed the words manipulation and manipulative 142 times in listing its reasons for rejecting the application. Cboe BZX Exchnage Inc. filed a proposed rule change with the SEC earlier in March this year.
Another Bitcoin ETF Denied. Tether fraud and market manipulation cited as some of the justifications.
Everyone wants a Bitcoin ETF.
Nobody wants Tether transparency."Manipulation" or "Manipulative" is mentioned 142 times in the denial notice. pic.twitter.com/PlpRtnQfnR
— Bitfinex’ed 🔥 Κασσάνδρα🏺 (@Bitfinexed) December 3, 2021
The SEC rejected the Cboe BZX Exchange’s proposal.
The SEC rejected the exchange’s proposal. It cited that BZX does not sufficiently contest the presence of fraud and manipulation in the BTC spot market. Listing some of the fraudulent activities that it has previously raised concerns about, the SEC specifically mentioned:
- Wash trading
- Persons with a dominant position (aka whales) manipulating prices
- Hacking of trading platforms and the BTC network
- Malicious control of the BTC network
- Trading based on insider information, including false information
- Manipulative activity related to the ‘purported stablecoin’ Tether
- Fraud and manipulation within trading platforms themselves
The regulator also cited security concerns related to the BTC blockchain itself and various trading platforms.
BTC ETF applications continue to get rejected.
As reported earlier, the US SEC has rejected at least one of the two recent Bitcoin exchange-traded fund (ETF) applications because of the risky nature of the leveraged financial products. Wall Street Journal mentioned in its report that the financial regulator is planning to allow only unleveraged products related to Bitcoin at present. SEC’s announcement regarding leveraged bitcoin ETF came nearly two days after Valkyrie filed for a leveraged Bitcoin futures ETF and Direxion applied for an inverse fund for bears.