CryptoCurrency : The SEC can, and is very likely to, postpone approval of the VanEck and SolidX ETF until February 21, 2019.
**THIS IS NOT FUD. People should have reasonable expectations about what to expect going forward.**
I highly recommend reading the thread below from a well known government enforcement and securities litigation attorney to understand that the SEC is very likely to postpone approval of the VanEck and SolidX ETF until February 21, 2019. If the SEC uses every opportunity it has to extend the deadline, it has until that date.
0/ It kills me to tweet about SEC rulemaking procedures, but given the confusion on #crypto twitter today, it feels necessary.
TL;DR — the SEC can, and probably will, delay its decision on the VanEck/SolidX commodity-backed #bitcoin ETF until ~February 21, 2019.
— Jake Chervinsky (@jchervinsky) July 24, 2018
Some relevant portions below:
“The timing of the ETF approval process follows a standard formula:
– the ETF files a “proposed rule change” with the SEC;
– the SEC posts notice of the filing in the Federal Register and solicits comments; and
– the SEC has 45 days from posting to approve or deny the ETF.
Except the SEC doesn’t have to decide within 45 days. It can extend the deadline up to three times:
– 45 more days if “a longer period is appropriate”;
– 90 more days for the ETF to address grounds for disapproval; and
– 60 more days if again “a longer period is appropriate.”
This means the real deadline for the SEC to approve or deny an ETF is 240 days after it files notice in the Federal Register (45+45+90+60).
@Coindesk reported: “Notably, none of the ETF proposals being postponed are from VanEck and SolidX[.]”
But this isn’t notable at all. The deadline to approve or deny the Direxion ETF was July 23. As explained, the SEC waits until the deadline before issuing another extension.
The SEC wasn’t making a decision about all of the pending bitcoin ETFs today; it was just handling the next step in the process for the Direxion ETF.
It had absolutely no reason (or justification) to address the VanEck/SolidX ETF. The fact it didn’t do so is meaningless.
I understand if hopium has you thinking “okay, but just because the SEC *can* delay doesn’t mean it will.”
Sure, that’s fine in theory. But I can’t imagine the SEC will approve the first ever bitcoin ETF without taking all the time allowed by law. “
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