The United States Securities and Exchange Commission (SEC) has rejected Valkyrie and Kryptoin’s Bitcoin Cash ETF clearance requests. So far, the financial regulator has yet to approve Bitcoin cash ETFs.
The United States Securities and Exchange Commission has just rejected Valkyrie and Kryptoin’s bids to set up Bitcoin Cash ETFs, according to an official notice. Since the start of the year, the US stock market policeman has rejected dozens of ETF requests.
Bitcoin cash ETFs not welcome in the United States
The SEC has repeatedly postponed its decision on the Valkyrie Bitcoin Fund, and market-goers were hoping for approval. The Kryptoin ETF was also a Bitcoin spot ETF. The move comes just over a month after the rejection of VanEck’s Bitcoin Cash ETF.
Indeed, the SEC has always been extremely hesitant with regard to investment vehicles linked to cryptocurrencies. The authority also cited arguments related to investor protection and market manipulation as two main reasons for its successive rejections. Certainly, it has taken a big step forward by approving a few ETFs this year. However, most of them were Bitcoin futures ETFs.
For example, the SEC has approved the Valkyrie Bitcoin Futures ETF, which launched a few weeks ago on the Nasdaq. It also endorsed the ProShares Bitcoin Strategy ETF, which performed remarkably well after its launch.
This round of approvals shows that the SEC is at least prepared to give crypto investment vehicles, especially futures ETFs, a chance. SEC chairman Gary Gensler has confirmed this time and time again.
The US stock market policeman still has several ETF applications in his queue, and more decisions will likely be announced in the coming months. On the other hand, the SEC is working on a broader regulatory agenda.
SEC and other regulators to monitor crypto more closely in 2022
The SEC’s rulings on ETF requests give us a glimpse of what steps it will take in 2022. It even seems clear that US officials will introduce full regulation next year. The discussion on this topic has developed over the past year and several bodies are involved.
On the agendas of lawmakers are investor protection, taxation, stablecoin regulation and securities registration. The SEC, CFTC, OCC and others work on these different aspects of the market and are quick to step in where it matters.
However, it doesn’t look like US officials will introduce drastic regulations. The authorities want the market to adhere to existing laws, and introduce new laws if necessary.
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