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The Securities and Exchange Commission (SEC) is the U.S.âs independent exchange gatekeeper: without its blessing mainstream trading is not possible. It continues to frustrate would-be bitcoin exchange applicants who are now withdrawing. Even its former head has doubts about the SECâs competence when it comes to bitcoin.
Also read:Â Bitcoin Core Developer Appeals to SEC Regarding BIT
SEC Pushes Bitcoin Listings Back to OTC
Companies seeking exchange equity volume and prestige come to the New York Stock Exchange (NYSE). The Big Board, as itâs known, is the worldâs most important exchange by the metric of market capitalization. NYSE is also the traditional home to the Dow Jones Industrial Average (DJIA) â which comprises 30 representative companies that are used popularly as a barometer for the US economy at large.
Intercontinental Exchange Inc. (ICE) is its parent company, and at the turn of the century it unknowingly created an ideal venue for bitcoin-related stock and fund speculation: the NYSE Arca exchange (Arca).
Arca became the first solely electronic exchange, and also ranks first in exchange-traded funds (ETFs). With a few hiccups along the way, Arca proved to be sufficiently anonymous, open, and fast.
Grayscale Investment LLC (GIL), a Digital Currency Group company, hoped to bring its Bitcoin Investment Trust (BIT) to Arca. Currently the Trust lists on OTCQX, a quantified review, over-the-counter (OTC) exchange. OTCQX is considered prestigious among OTC exchanges, but not on par with the NYSE in terms of mainstream credibility.
At the time of writing, BIT currently is trading at over 600 USD, up from just 92 USD a year ago.
BITâs design is also a first for bitcoin, as it allows traders to speculate on price fluctuations without downloading a wallet, storage, or even owning bitcoins.
According to Reuters, ICE âwithdrew an application with the [SEC] to list [the BIT].â The article insists âthe regulatory agency has expressed doubts over the bitcoin market being unregulated.â
Arthur Levitt Scolds the SEC
âAlthough digital currency market regulation continues to rapidly evolve,â GIL commented on the withdrawal, âat this time Grayscale does not believe there have been enough regulatory developments to prompt the SEC to approveâ their application.
Grayscale also recalled how this year alone the SEC flat out refused two other cryptocurrency projects.
The GIL statement was measured, overall. However, the phrase âdoes not believe there have been enough regulatory developmentsâ is Wall Street speak for frustration over the SECâs lack of preparedness at bitcoinâs obvious potential.
A less cloudy point was struck by the SECâs former head regarding his previous employer. When prompted about bitcoin and the SEC, Arthur Levitt answered he believes âthe tendency of the [SEC] has been to stay away from bitcoin.â
It appears, Mr. Levitt continued, the SEC doesnât âwant to take on something as complex from a regulatory point of view as bitcoin is.â
Controversy swirls in the bitcoin community about the value of mainstream and OTC speculation. Some are concerned such moves violate the basic principles of bitcoin by essentially appealing to the same entities, banks, bitcoin was designed to subvert.
Other bitcoiners are confident mainstream adoption will ensure a vibrant future for bitcoin.
What do you think? Would a NYSE Arca listing be good for bitcoin? Is there danger in traders never holding bitcoin, only looking at its price? Tell us in the comments below.
Images courtesy of:Â REUTERS/Kevin Lamarque, NTEU, MarketWatch.Â
At Bitcoin.com thereâs a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post SEC Unprepared for Bitcoin, Applications Denied and Withdrawn as a Result appeared first on Bitcoin News.
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