The American federal regulator, SEC, has decided to review the Bitcoin ETF application by VanEck. The filing revealed that the regulator had deferred its decision on the approval as the commission’s new crypto-friendly chairman Gary Gensler conducts the reviews.
Meanwhile, experts suggest that the proposed ETF would be one of its kind in the market, giving investors direct exposure to digital assets. On the other hand, several other firms aim to give investors opportunities to crypto via digital company stocks.
Hence, it is likely that the federal watchdog is mulling possible pitfalls for the retail companies, most of them stemming from manipulation and volatility.
Normally, such reviews takes forty-five days for the SEC to review the application. Yet, it stated that it needs more time. The filing read,
The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received.
VanEck’s last ETF application, which excited crypto supporters, argued that Bitcoin has matured over the last few years. But as the new chairman took charge, many hope that these applications would not be reviewed sceptically. The new SEC head had previously taught blockchain and crypto courses at MIT.
Days ago, Gensler stated that he would review the applications in light of the directions by the US Treasury Department led by Janet Yellen. Biden’s top aide has been previously critical of digital assets, arguing that these tokens have little value. Amidst all this, the US government policy regarding the growing market remains uncertain.