The Securities and Exchange Commission (SEC), has announced that it will be postponing its decision on Bitcoin Exchange Traded Funds (ETFs) application filed by VanEck SolidX Bitcoin Trust till February 2019.
The bitcoin ETF application filed by VanEck has been backed by the Chicago Board Options Exchange (CBOE), which has been quite vocal in its support for the cryptocurrency derivatives.
As it has done before, the SEC stated that it needed more time to review the proposal. In a press release, the regulatory body said, “The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,10 designates February 27, 2019, as the date by which the Commission shall either approve or disapprove the proposed rule change.
However, it must be noted that the Commission has taken exception to its own rule where it has stated that the body cannot take more than 60-90 days to decide on a course of action. In the press release, the Commission states, ” The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 60 days if the Commission determines that a longer period is appropriate and publishes reasons for such determination. The proposed rule change was published for notice and comment in the Federal Register on July 2, 2018. December 29, 2018, is 180 days from that date, and February 27, 2019 is 240 days from that date.”
A similar press release had been issued in September this year after nearly a sizeable number of people had voted in favour of bitcoin ETFs on the regulatory body’s website. The surge of support had come when the body had opened its website to comments on the derivative.
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