SEC postpones decision on cryptocurrency ETFs
The Securities and Exchange Commission (SEC) has turned down plans by members of two Wall Street trade groups to set up exchange-traded funds (ETFs) for bitcoin and other cryptocurrencies, essentially killing off the idea for now.
The move was laid out in a letter sent by Dalia Blass, director of the SEC’s investment management division, to the Investment Company Institute and Securities Industry and Financial Markets Association. The SEC essentially said there were too many unanswered questions to allow for cryptocurrency ETFs without creating excessive risks for investors.
The SEC already blocked the creation of a bitcoin ETF by the Winklevoss twins, Tyler and Cameron, last year.
The SEC wrote. “[We stand] ready to engage in dialogue with sponsors regarding the potential development of these funds. We believe, however, that there are a number of significant investor protection issues that need to be examined before sponsors begin offering these funds to retail investors.”
“We do not believe that it is appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products, and we have asked sponsors that have registration statements filed for such products to withdraw them,” the SEC said.
Former FDIC Chair: Bitcoin is something regulators need to deal with but not ban
Bitcoin is “something regulators need to deal with but not ban.” says former FDIC Chair Sheila Bair.
“I think some additional regulation would be good, and I argue for that…We don’t ban assets.” she says.
The former FDIC Chair now serves as a board member for Paxos, a financial firm developing blockchain technology for digital currency.
NYSE-parent ICE partners with blockstream to offer cryptocurrency data feed
Intercontinental Exchange Inc said on Thursday it will launch a cryptocurrency data feed to provide real-time information from more than 15 cryptoexchanges.
The data feed, which will be in collaboration with blockchain technology provider Blockstream, will offer information on prices, trading volume and order book for several leading cryptocurrencies, including bitcoin, NYSE-operator ICE said.
The prices will be quoted against the U.S. dollar and other major currency pairs.
ICE is the latest U.S. exchange operator to join the crypto party. Rivals Cboe Global Markets Inc and CME Group Inc already offer trading in bitcoin futures.
Blockchain News 19 January 2018
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