US SEC Gives A Second Chance To Rejected ETF Proposals

While the U.S. Securities and Exchange Commission's (SEC) rejection of the nine proposed Bitcoin ETFs disappointed the crypto community, the government regulatory agency seems to have left a door open for these proposals, with the news that the SEC will review the rejection orders.

Rejected ETF

In a report from crypto news outlet Coindesk published on August 23, the US SEC has revealed that they will review the disapproval orders issued on Wednesday for nine proposed Bitcoin ETFs.

The SEC had previously rejected efforts from three firms, namely, Proshares, GraniteShares, and Direxion. Senior SEC officials will now review the rejection orders, although the SEC has yet to give a concise timeframe for when the review will be completed.

SEC Secretary Brent Fields informed NYSE Group senior counsel David De Gregorio via a letter that:

“This letter is to notify you that, pursuant to Rule 43 I of the Commission’s Rules of Practice, 17 CFR 20 I .43 1, the Commission will review the delegated action. In accordance with Rule 431 (e), the August 22 order is stayed until the Commission orders otherwise.”

Similar letters were also sent to other parties, such as a second letter to the NYSE Group and another to Cboe Global Markets.

Commissioner Hester Peirce of the US SEC, who notably dissented from the SEC’s rejection of a proposed ETF from the investment duo of Cameron and Tyler Winklevoss, announced the news via her Twitter account.

Peirce also explained the next steps to come from the SEC as it gears to review the decisions.

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