Why SEC's Approval So Important For Bitcoin?
The US Securities and Exchange Commission (SEC) is an agency in the United States that is responsible for overseeing the stock market and securities markets. In addition to the audit function of the SEC, the Federal Securities Law also has the duties of proposing federal securities laws, ensuring the implementation of existing laws, regulating securities markets, statistical data and market analysis, and protecting investors. One of the SEC's tasks is to decide on ETF requests.
In order to create a stock exchange mutual fund, the SEC, which is a regulatory body and whose duties are briefly mentioned above, requires permission. The SEC evaluates offers under Federal US law and reviews and decides on a variety of criteria, such as protecting investors from risky assets and possible fraud attempts. Currently, Bitcoin ETF requests submitted by different companies are being reviewed by the SEC to make a decision.
The first issue that should be examined by the SEC regarding the acceptability of Bitcoin ETF requests is whether or not Bitcoin is a market asset in terms of existing laws. The second important issue is whether or not Bitcoin is a commodity, a security or a currency. While these issues have long been on the agenda of financial circles and legislators, the number of states that recognize Bitcoin as a currency or commodity is increasing. In a recent Israeli court case, it was decided that Bitcoin was not a currency but a taxable asset. The debate over whether crypto currencies should be integrated into the current financial system, and if so, depends on which procedures and principles, has long been on the agenda of the US senate and regulatory agencies such as the SEC.
The SEC's decision on Bitcoin ETF requests dates back to March 2017. Since 2017, the SEC has rejected many Bitcoin ETF requests for reasons such as the fact that Bitcoin is susceptible to significant manipulation, has an over-fluctuating exchange rate, and cannot be tracked. The SEC has multiple ETF requests pending approval. The decision was postponed by the SEC until 13 October and 18 October 2019 for the Bitcoin ETF requests to be listed on the NYSE Arca and CBOE BZX exchanges by the VanEck / SolidX partnership, Bitwise Asset Management and Wilshire Phoenix in the early months of 2019.
The United States, with many crypto currency exchanges, mutual funds and mining businesses, is the country with the highest Bitcoin assets. In the study carried out by DataLight, a crypto money and blockchain research firm on the geographical distribution of Bitcoin network, the data of 2625 Bitcoin Nodes and USA in the first place as of February 24, 2019 and that of Germany followed USA in 2016 were shared. Therefore, regulations on crypto currencies and SEC's Bitcoin ETF decision are very important for the US crypto currency market, but they are also very important for the global crypto currency market.
SEC approval of Bitcoin ETFs will raise the confidence of investors in Bitcoin, while attracting the attention of many investors and large mutual funds to the crypto currency market. In financial circles, this is expected to significantly increase the market volume of crypto currencies and trigger a significant increase in Bitcoin's value. However, the SEC's decision to approve Bitcoin ETF will accelerate Bitcoin regulations globally and enable Bitcoin to reach a wider audience. The financial community remains hopeful of the SEC's decision in October.
Original of this article prepared by Barimeks Bitcoin Borsası, which is Turkey's new inovative crypto exchange, and can be found at this link SEC’in Bitcoin ETF’ine İzin Vermesi Neden Önemli.
In order to create a stock exchange mutual fund, the SEC, which is a regulatory body and whose duties are briefly mentioned above, requires permission. The SEC evaluates offers under Federal US law and reviews and decides on a variety of criteria, such as protecting investors from risky assets and possible fraud attempts. Currently, Bitcoin ETF requests submitted by different companies are being reviewed by the SEC to make a decision.
The first issue that should be examined by the SEC regarding the acceptability of Bitcoin ETF requests is whether or not Bitcoin is a market asset in terms of existing laws. The second important issue is whether or not Bitcoin is a commodity, a security or a currency. While these issues have long been on the agenda of financial circles and legislators, the number of states that recognize Bitcoin as a currency or commodity is increasing. In a recent Israeli court case, it was decided that Bitcoin was not a currency but a taxable asset. The debate over whether crypto currencies should be integrated into the current financial system, and if so, depends on which procedures and principles, has long been on the agenda of the US senate and regulatory agencies such as the SEC.
The SEC's decision on Bitcoin ETF requests dates back to March 2017. Since 2017, the SEC has rejected many Bitcoin ETF requests for reasons such as the fact that Bitcoin is susceptible to significant manipulation, has an over-fluctuating exchange rate, and cannot be tracked. The SEC has multiple ETF requests pending approval. The decision was postponed by the SEC until 13 October and 18 October 2019 for the Bitcoin ETF requests to be listed on the NYSE Arca and CBOE BZX exchanges by the VanEck / SolidX partnership, Bitwise Asset Management and Wilshire Phoenix in the early months of 2019.
The United States, with many crypto currency exchanges, mutual funds and mining businesses, is the country with the highest Bitcoin assets. In the study carried out by DataLight, a crypto money and blockchain research firm on the geographical distribution of Bitcoin network, the data of 2625 Bitcoin Nodes and USA in the first place as of February 24, 2019 and that of Germany followed USA in 2016 were shared. Therefore, regulations on crypto currencies and SEC's Bitcoin ETF decision are very important for the US crypto currency market, but they are also very important for the global crypto currency market.
SEC approval of Bitcoin ETFs will raise the confidence of investors in Bitcoin, while attracting the attention of many investors and large mutual funds to the crypto currency market. In financial circles, this is expected to significantly increase the market volume of crypto currencies and trigger a significant increase in Bitcoin's value. However, the SEC's decision to approve Bitcoin ETF will accelerate Bitcoin regulations globally and enable Bitcoin to reach a wider audience. The financial community remains hopeful of the SEC's decision in October.
Original of this article prepared by Barimeks Bitcoin Borsası, which is Turkey's new inovative crypto exchange, and can be found at this link SEC’in Bitcoin ETF’ine İzin Vermesi Neden Önemli.
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