SEC Clarifies After Circulating Fake Bitcoin ETF Approval Announcement

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SEC Clarifies After Circulating Fake Bitcoin ETF Approval Announcement. The United States Securities and Exchange Commission (SEC) said on Tuesday, January 9 2024 that the announcement of the Spot Bitcoin ETF approval on social media was incorrect. The fake social media post said the SEC had approved a bitcoin ETF for trading.

The price of bitcoin spiked after the post, but then quickly fell below USD 46,000 or the equivalent of IDR 714.6 million (assuming an exchange rate of IDR 15,535 per US dollar).

In a subsequent statement late Tuesday, an SEC spokesperson said the agency determined there had been unauthorized access to the SEC’s X account by an unknown party.

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“The SEC will work closely with law enforcement and our partners across government to investigate this matter and determine appropriate next steps regarding unauthorized access and other related violations,” said an SEC spokesperson, quoted by CNBC, Wednesday (10/1/ 2024).

The SEC is expected to make a decision on spot bitcoin ETFs this week after opposing them for years. More than a dozen asset managers have applied to create such a fund, including many that filed recent registration statements.

The price of the largest cryptocurrency has risen in recent months, partly due to growing optimism that a so-called spot bitcoin ETF will be approved. Funds that track the price of bitcoin futures are already traded on exchanges in the US.

Crypto advocates argue the launch of bitcoin spot funds could bring a new type of investor into digital assets. ETFs are instruments used routinely by financial advisors. The idea is that advisors and investors who are intimidated by the intricacies of storing bitcoin will be more willing and able to buy the crypto in an ETF.

Previously it was reported that the United States (US) Securities and Exchange Commission’s social media account

Reporting from Yahoo Finance, Wednesday (10/1/2024), the post, which included fake comments claiming to come from SEC Chairman Gary Gensler, triggered a spike in Bitcoin prices.

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Traders have speculated for weeks the agency could approve some products as soon as Wednesday.

Not long after the post circulated, Gensler said from his X account that the post was fake and the agency had not taken action regarding ETFBitcoin Spot.

SEC Clarifies After Circulating Fake Bitcoin ETF Approval Announcement. Currently about a dozen companies have applied to list Bitcoin-backed ETFs in the US. The SEC has until January 10 to take action on at least one of those applications.

Many crypto industry players speculate that regulators will use the date to announce a number of decisions at once.

There are two technical requirements that must be met before a spot-backed Bitcoin ETF can begin trading. First, the SEC must sign off on a so-called 19b-4 filing by the exchange that will list the ETF.

Second, regulators must approve the relevant S-1 forms, which are registration applications from prospective listing issuers that include BlackRock and Fidelity.

The SEC plans to vote on the exchange filing this week. Regulators may or may not take action on the issuer’s application, the S-1, at about the same time.

If the SEC grants both sets of necessary approvals, the ETF can begin trading as soon as the next business day.

Previously it was reported that the Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler had issued a warning regarding cryptocurrency investment. Because, there are a number of violations in the field of crypto investment.

He stressed it undermines trust when so many people are hurt and all they can do is wait in line in bankruptcy court. Gensler’s warning comes as the market expects approval of a Spot Bitcoin ETF in the near future.

“There is a lot of non-compliance in the crypto world. This undermines confidence when so many people are hurt and all they can do is queue in bankruptcy court. Furthermore, this can make it difficult for well-meaning actors to compete,” he said, quoted from Bitcoin, Saturday (23/12/2023).

He also outlined non-compliance that is common in the crypto industry regarding securities laws. These laws are, not only “to help provide you with transparency so you can make investment decisions, but also to protect you from fraud and manipulation.”

He then repeated previous statements that crypto also violates laws set by other regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN).

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“It really is the Wild West and it’s spread all over the world,” Gensler said.

SEC Clarifies After Circulating Fake Bitcoin ETF Approval Announcement. He emphasized that this does not only happen to one or a few criminals. This is something that happens a lot in this field globally, and it is difficult for well-meaning actors to compete because there are so many challenges elsewhere.

“Crypto companies like Coinbase (a public company whose listing is overseen by the SEC) have been trying to get clarity on SEC guidelines for compliance over the past few years. The SEC has not taken a clear stance and has relied on regulation through enforcement,” he said.

On the other hand, Gensler and the SEC under his leadership have been criticized by many for taking an enforcement-centric approach to regulating the crypto industry. There is even a bill in Congress that would remove him as chairman of the securities regulator.

Meanwhile, the SEC is currently evaluating 13 Bitcoin Spot ETF applications and is expected to approve some of them on January 10.

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