Winklevoss rejection aside, the SEC still likes Bitcoin

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Winklevoss rejection aside, the SEC still likes Bitcoin

Bitcoin ETF’s have been a hot topic recently in the crypto community. The SEC recently delayed their decision regarding the Bitcoin ETF proposal submitted by Direxion. This news was received positively by the community, as we are used to seeing swift rejections of these proposals.

One such rejection happened on July 26th, when the SEC officially rejected an ETF proposal from the Winklevoss twins. They released a lengthy statement detailing their problems with the Winklevoss ETF. One of the main issues was a cited lack of measures to prevent price manipulation.

The statement read: “The Commission addresses each of these arguments below. In Section III.B, the Commission addresses BZX’s assertion that bitcoin and bitcoin markets, including the Gemini Exchange, are uniquely resistant to manipulation and finds that the record before the Commission does not support such a conclusion.”

This development triggered a 4% drop in Bitcoin price according to coinmarketcap.com. One notable person who is critical of this decision is SEC commissioner Hester Peirce, who expressed her disappointment, saying, “…I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market. More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order.”

Having the commissioner of the SEC give this type of statement should give hope to those who wish to see a Bitcoin ETF. There is a possibility that her support of Bitcoin could help push the SEC to accept Direxion’s ETF proposals. As for all things in crypto, only time will tell.