1. BITBILIHome
  2. Article

Coinbase could be the weapon formed against BTC ETFs approval

• 188 views

TL;DR Breakdown

  • Market analysis shows that entities partnering with Coinbase for a Bitcoin ETF could face trouble rather than success.
  • Lawyers following the Coinbase – SEC situation closely point out that they “don’t think it’s necessarily a badge of honor to say that you’re using an entity that the SEC is suing.”
  • There remains a notion that the SEC under Gary Gensler will not waive their stand on BTC ETFs regardless of who files them.

Description

Here’s a long story short – the SEC went after Coinbase and Binance.US in June, and all hell broke loose in the crypto ecosystem. Soon after that, market behemoth BlackRock filed for Bitcoin ETF and named Coinbase as their security service provider. And for a while, all seemed to work out best for the American … Read more

Here’s a long story short – the SEC went after Coinbase and Binance.US in June, and all hell broke loose in the crypto ecosystem. Soon after that, market behemoth BlackRock filed for Bitcoin ETF and named Coinbase as their security service provider. And for a while, all seemed to work out best for the American crypto exchange.

However, recent market analysis shows that Coinbase could be the very weapon formed against BTC ETFs that is causing them not to prosper – to approvals. According to a report by Reuters, partnering with Coinbase Global may hinder rather than help Nasdaq’s efforts to gain regulatory approval for a Bitcoin exchange-traded fund (ETF) it plans to launch with BlackRock.

Bitcoin ETF filings cause a stir in the crypto community

Last month, Nasdaq submitted to the U.S. Securities and Exchange Commission (SEC) a proposal to launch a BlackRock ETF. The ETF would track the spot bitcoin market, prompting competitors, including Fidelity and Invesco, to file for comparable bitcoin ETFs on Cboe Global Markets.

The proposal from BlackRock, the world’s largest asset manager, revived industry hopes that the SEC might eventually be swayed to approve a bitcoin ETF, which would be a watershed moment for the digital asset.

Larry Fink, CEO of BlackRock, stated in an interview with FOX Business last week that the ETF could make it simpler for the average person to invest in cryptocurrencies. Bitcoin has risen by over 20% since the filing was made public.

The SEC has rejected previous proposals for spot bitcoin ETFs on the grounds that they would be susceptible to manipulation. Last week, Nasdaq announced that it would address this concern by collaborating with Coinbase, the largest crypto exchange in the United States, to regulate trading in the underlying bitcoin market. This week, the CBOE proposed a similar surveillance system.

Coinbase’s involvement poses a challenge to BTC ETF prospects

Entities filing for ETFs have turned to the crypto exchange for surveillance services. According to some lawyers who follow the industry, this could potentially be a problem. The SEC sued Coinbase last month, intensifying SEC chairman Gary Gensler’s crackdown on the crypto industry. 

According to the SEC, Coinbase should be registered as a broker, exchange, and clearinghouse and subject to the SEC’s risk management and investor protection regulations. This is because it trades cryptocurrencies that qualify as securities.

In light of Coinbase’s denial of the SEC’s allegations, its suitability as a partner for Nasdaq and CBOE is questioned.

I don’t think it’s necessarily a badge of honor to say that you’re using an entity that the SEC is suing as providing you with critical investor protection services […] The whole point of the SEC’s lawsuit is that there’s no transparency into what Coinbase does.

John Reed Stark, former chief of the SEC’s Office of Internet Enforcement

As a publicly traded company, the crypto exchange has previously stated that its business is subject to numerous disclosure regulations. According to Nasdaq’s filing, the exchange is essential to the U.S. bitcoin market, as it accounts for approximately 56% of U.S. dollar bitcoin trading.

Will the partnership work?

According to one attorney, Gensler has stated that bitcoin is a crypto token that falls outside the SEC’s jurisdiction and that the crypto is not subject to the Coinbase litigation. Therefore the ETF proposals are unrelated to the Coinbase litigation and should be treated separately.

In addition, Gensler has stated that the crypto industry is plagued with fraud and that companies such as Coinbase made a “calculated economic decision” to disregard SEC regulations. The majority of crypto companies contest the SEC’s authority and argue that the rules are ambiguous.

Upon acceptance of the filing applications for the Bitcoin ETF, the SEC has a total of 240 days to make a decision.

Some lawyers foretell that the SEC and Gensler will not waive their stand on BTC ETFs regardless of the BlackRock filing. One lawyer asserts that “the statements that Gensler has made don’t give me any sense that he’s going to be flexible […] I don’t see that the SEC is going to open the gates.”

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Coinbase could be the weapon formed against BTC ETFs approval

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年7月14日 03:08
Next 2023年7月14日 04:53

Related articles

  • Crypto firm Robinhood slashes 7% staff amidst market turmoil

    TL;DR Breakdown Robinhood, a popular brokerage firm for cryptocurrencies and equities, has reportedly laid off approximately 7% of its workforce. It was revealed that around 150 employees were let go in order to adjust to market conditions and realign team structures. Robinhood is not the only company feeling the effects of a less active crypto market. Lower trading volumes across the industry have resulted in reduced profits for companies involved in facilitating crypto trades. Description Robinhood, a popular brokerage firm for cryptocurrencies and equities, has reportedly laid off approximately 7% of its workforce, according to a report by The Wall Street Journal. The layoffs come as the company faces challenges due to declining trading activity and a less enthusiastic user base compared to the frenzied days of the meme stock … Read more Robinhood, a popular brokerage firm for cryptocurrencies and equities, has reportedly laid off approximately 7% of its workforce, according to a report by The Wall Street Journal. The layoffs come as the company faces challenges due to declining trading activity and a less enthusiastic user base compared…

    Article 2023年6月29日

  • Latin American currencies over the week: Brazil’s inflation increases less than expected

    TL;DR Breakdown In Brazil, the real saw a 0.1% increase against the dollar as inflation came in lower than expected as Latin American currencies fell. Despite Brazil’s significant economic growth in the first half of the year, tax revenue has sharply declined. The UAE and Brazil have formed a partnership to exchange knowledge and expertise in economics through the UAE’s government experience exchange program. Description In Brazil, the real saw a 0.1% increase against the dollar as inflation came in lower than expected in August. Meanwhile, Latin American currencies experienced a decline to a three-week low this week in a volatile trading session, primarily influenced by losses in the Mexican peso. Simultaneously, the dollar maintained its six-month peak, influenced by … Read more In Brazil, the real saw a 0.1% increase against the dollar as inflation came in lower than expected in August. Meanwhile, Latin American currencies experienced a decline to a three-week low this week in a volatile trading session, primarily influenced by losses in the Mexican peso. Simultaneously, the dollar maintained its six-month peak, influenced by concerns about…

    Article 2023年9月9日

  • Robot conductor EveR 6 takes center stage in South Korean orchestra performance

    TL;DR Breakdown The robot conductor EveR 6 co-conducted a performance at the National Theatre of Korea, showcasing significant progress in robotics and music. Using motion capture technology, EveR 6 learned the art of conducting by mimicking the baton movements of a human conductor. The robot demonstrated precise movements and synchronization, captivating the audience with humanoid features. Description In a groundbreaking event that captivated audiences at the National Theatre of Korea, a robot named EveR 6 took centre stage alongside conductor Soo-Yeoul Choi to co-conduct the mesmerizing performance of “Absence.” The android co-conductor, created by the Korea Institute of Industrial Technology (KITECH), marked a significant milestone in robotics and music. Demonstrating its humanoid … Read more In a groundbreaking event that captivated audiences at the National Theatre of Korea, a robot named EveR 6 took centre stage alongside conductor Soo-Yeoul Choi to co-conduct the mesmerizing performance of “Absence.” The android co-conductor, created by the Korea Institute of Industrial Technology (KITECH), marked a significant milestone in robotics and music. Demonstrating its humanoid features, EveR 6 showcased a face, torso, two arms, a…

    Article 2023年7月5日

  • Bank of America’s jaw-dropping $100b bond market blunder

    TL;DR Breakdown Bank of America is facing a substantial $100bn bond market loss due to decisions made during the pandemic to invest heavily in low-yield bonds. BofA’s loss accounted for one-fifth of the total $515bn unrealized losses in the securities portfolios of nearly 4,600 U.S. banks. The bank’s financial performance has been impacted, as shown by a 15% drop in its share price this year and a decrease in its net interest margin compared to competitors. Description In the wake of the Covid-19 pandemic, U.S. banking giant Bank of America (BofA) finds itself reeling from a staggering $100bn bond market blunder, reflecting the risks taken during unprecedented times. The decision to invest a majority of the $670bn pandemic-era deposit inflow into bonds at a time of low yields and inflated prices has … Read more In the wake of the Covid-19 pandemic, U.S. banking giant Bank of America (BofA) finds itself reeling from a staggering $100bn bond market blunder, reflecting the risks taken during unprecedented times. The decision to invest a majority of the $670bn pandemic-era deposit inflow into bonds…

    Article 2023年7月2日

  • Google announces the launch of its Digital Futures project

    TL;DR Breakdown Google has unveiled its digital futures project with a $20 million investment in AI. Addressing concerns and promoting responsible innovations. Description In the wake of the Google Cloud Next conference held in San Francisco, Google has unveiled an ambitious initiative known as the Digital Futures Project. This project is designed to bring together diverse voices in the field of artificial intelligence (AI) development and foster responsible AI practices. Alongside this endeavor, Google has committed a substantial … Read more In the wake of the Google Cloud Next conference held in San Francisco, Google has unveiled an ambitious initiative known as the Digital Futures Project. This project is designed to bring together diverse voices in the field of artificial intelligence (AI) development and foster responsible AI practices. Alongside this endeavor, Google has committed a substantial $20 million fund to support the responsible development of AI. Google set to push for AI development with the fund Brigitte Gosselink, Google’s Director of Product Impact, expressed the company’s commitment to this initiative. She acknowledged the transformative potential of AI, which can make…

    Article 2023年9月13日
TOP