Friday, 20 April 2018

CBOE Asks US SEC Not to Intervene in Bitcoin ETF Development

CBOE asks US SEC not to intervene in Bitcoin ETF development, as the President of CBOE, Chris Concannon, has reiterated the sentiments from the US Congress hearing earlier in March, where experts stated that the existing legislation is sufficient in terms of regulating particular aspects of cryptocurrencies.
The exchange operator of CBOE Global Markets has called for the US Securities and Commission (SEC) to not interfere in the development of a Bitcoin exchange-traded fund (ETF). The organization has provided reasoning that ETFs are similar to other commodity-based ETFs.


CBOE Asks US SEC Not to Intervene in Bitcoin ETF Development

ETFs are the type of exchange-traded-product (ETP), as they are also a marketable security that tracks an index, bonds, a commodity, or a basket of assets, such as an index fund. ETFs trade just like common stock on a stock exchange and normally, they have a higher daily liquidity and lower fees in comparison to shares of mutual funds.

The President of CBOE, Chris Concannon has written a letter in a response to the letter from the US SEC, where the regulator has indicated its concerns in regards to the over sufficient liquidity in cryptocurrency markets. The US watchdog has also mentioned the potential risks for manipulation.

Mr. Concannon has responded:

“As the volumes continue to grow, especially on regulated US markets, the overall spot Bitcoin market looks more and more like a traditional commodity market and CBOE continues to believe that the spot market is sufficiently liquid to support a Bitcoin ETP.”

He has also added that “…CBOE believes that the arbitrage mechanism would function identically to other commodity-related ETPs… thereby keeping the price of the ETP in line with the price of Bitcoin and limiting the risk of manipulation shares of the ETP.”


US SEC Cryptocurrency companies scrutiny

Following on this, Mr. Concannon has reiterated the sentiments from the US Congress hearing earlier in March, where experts stated that the existing legislation is sufficient in terms of regulating particular aspects of cryptocurrencies. His letter reads:

“While CBOE shares many of the concerns raised in the Staff Letter, we believe that the vast majority of these concerns can be addressed within the existing framework for commodity-related funds related to valuation, liquidity, custody, arbitrage, and manipulation.”

The US SEC has been attempting to step up the measures focused on crypto-related companies this year. In the middle of this month, the SEC has confirmed a number of probes into cryptocurrency companies, adding that it has issued subpoenas t firms it believes could flout securities laws during the ICO processes.

source:atozforex.com
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