One day after the U.S. Securities and Exchange Commission (SEC) rejected proposed rule changes for nine bitcoin ETFs, the Commission initiated a review of all related decisions. Three rejection orders made on August 22 are now stayed pending the review by the SEC Chairman and the Commissioners.
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SEC Initiates Review of Nine Bitcoin ETFs
After rejecting the proposed rule changes for nine bitcoin ETFs, the SEC sent out notices stating that it will review the delegated actions on all of them. All August 22 rejection orders are now stayed.
This is the first time the SEC initiated a review of its staff decisions on bitcoin ETFs. In contrast, when the proposed rule change for the Winklevoss bitcoin ETF was rejected in March, it took Bats BZX exchange to file a petition for the Commission to review the decision.
News.Bitcoin.com reached out to the SEC for comments. According to Rule 431(c) of the SEC’s Rules of Practice:
The Commission may, on its own initiative, order review of any action made pursuant to delegated authority at any time, provided, however, that where there are one or more parties to the matter, such review shall not be ordered more than ten days after the action. The vote of one member of the Commission, conveyed to the Secretary, shall be sufficient to bring a matter before the Commission for review.
Commissioner Peirce’s Comments
While the Commission did not confirm which Commissioner(s) called for the review, Commissioner Hester Peirce has been vocal on social media about the review taking place.
She has since tweeted, “Yesterday’s staff orders disapproving SRO rules related to a number of bitcoin ETFs are stayed pending Commission review,”
