Hester Peirce, who is the United States Securities and Exchange (SEC) commissioner in July, 26, published an official dissent statement from second disapproval by the agency. The publication was concerning Winklevoss brother’s Bitcoin (BTC) exchange-traded fund (ETF) application. Winklevoss’ Bats BZX Exchange, Inc. filed a proposal rule change. They filed the proposal in June for allowing it to list and trade Bitcoin ETF shares known as the Winklevoss Bitcoin Trust. The main aim of filing it was because the agency rejected it in March 2017. Following the rejection of the first proposition, they filed a petition seeking a review of the disapproval.

The SEC commissioner referring the recent disapproval, stated that the agency has fundamentally gone astray with the latest decision made, on three grounds. She stated that the SEC overstepped its limited role when focusing on the different characteristics of the Bitcoin market. Rather than the derivative, the applicant sought to list. She also reinforced her point by adding that the SEC disapproval concerns go to Bitcoin as an investment.

If there is consistent application of the disapproval orders, other ETPs would be in peril. This is because most manipulation rumors affect many commodities in the market. She further states that the disapproval from the agency is likely to inhibit institutionalization in the Bitcoin market. The last point she gave stated that the disapproval portrays an innovation’s skeptical view. For this reason, she states that the decision to reject the proposal would lead to adverse effects. These effects are not only on the product, but also beyond the particular product.

Cryptocurrency And The SEC

Markets of cryptocurrency, as stated by the SEC commissioner Hester, took a tumble. It happened after the disapproval of the proposal by the agency. This is because an experience of wiping out a huge amount of $12 billion from the market capitalization. For such an impact to happen in the market, it is clear that it will take more time to get things back to normal. Not all planned operations will be as successful as intended within a short time.

Meanwhile, on the 24th of July, the SEC delayed the decision it made on a Bitcoin ETF application. The application was from Direxion which is an investment organization. On the same day, Bitwise digital asset manager filed its application with a regulator. The main purpose was to have an ETF that would track an index of ten cryptocurrencies.