The U.S. Securities and Exchange Commission (SEC) rejected a bid to launch a Bitcoin-based stock exchange investment fund from Wilshire Phoenix. This was the last active application to launch a Bitcoin ETF pending with the SEC.
The ministry said the firm was unable to prove that Bitcoin was sufficiently protected from market manipulation.
“The Commission shall reject the proposed change of rules submitted by the exchange, as it has not found that it complies with the requirements of the Law on Exchanges, including the requirement of Section 6 (b) (5). The rules of national securities exchanges should prevent fraud and manipulation, ”- The SEC statement said.
SEC Special Commissioner Hester Piers, who is often called the “crypto mom” because of her friendly attitude to bitcoin, responded to the decision.
“The commission does not want to approve any product that will provide access to the bitcoin market. And no application will comply with the ever-changing standards that the Commission makes mandatory only for products related to Bitcoin, ” she wrote.
Recall that the SEC postponed the decision on the application of Wilshire Phoenix several times. The company itself made adjustments to it, according to which, the fund had to be provided not only with bitcoin, but also with treasury bonds.