A commissioner at the U.S. Securities and Exchange Commission (SEC) has published a letter of dissent that disagrees with the agency’s decision to reject a second attempt by the Winklevoss twins to launch the first-ever Bitcoin ETF.
Yesterday it was announced that the SEC had denied an application[1] from Cameron and Tyler Winklevoss, founders of crypto exchange Gemini, to list shares of a proposed ETF. On the 30 June, 2016, the Bats BZX Exchange filed a proposed rule change with the Commission seeking to list and trade shares of the Winklevoss Bitcoin Trust.
This was disapproved last March; however, BZX then filed a petition seeking Commission review of the disapproval by delegated authority. Yesterday, though, saw the proposed rule change being denied.
In response, the price of Bitcoin fell from $8,300 prior to the news breaking to around $7,900 during early morning trading today, according to CoinMarketCap.
Following the decision by the SEC, commissioner Hester Peirce has taken to social media[2] and published a letter of dissent[3]. She writes:
“I believe that the proposed rule change satisfies the statutory standard and that we should permit BZX to list and trade this bitcoin-based exchange-traded product (“ETP”).”
She adds that the SEC’s decision “undermines investor protection by precluding greater institutionalization of the bitcoin market,” and that it “sends a strong signal that innovation is unwelcome in our markets,” which could produce an effect far beyond that of Bitcoin ETPs.
In her letter, Peirce explains that the proposed rule change satisfies the requirements of the Exchange Act Section 6(b)(5), but that the Commission “focuses its decision not on the ETP shares to be listed on the exchange but on the underlying bitcoin spot market.” She goes on to state that the SEC “erroneously” reads the
