The U.S. Securities and Exchange Commission (SEC) has issued a statement on the recent wave of applications for spot bitcoin exchange-traded funds (ETFs), saying that they do not meet the standards for approval. The SEC said that the applicants have not demonstrated how they would comply with the federal securities laws and the rules of the national securities exchanges, especially in terms of preventing fraud and manipulation.
The SEC also said that the spot bitcoin market is highly volatile, unregulated, and susceptible to cyberattacks, which pose significant risks for investors and market integrity. The SEC urged the applicants to withdraw their filings or face rejection. The statement comes as a blow to the hopes of many bitcoin enthusiasts who have been waiting for a spot bitcoin ETF to launch in the U.S., following the success of several bitcoin futures ETFs that debuted last year.
A spot bitcoin ETF would track the price of bitcoin directly, rather than through derivatives contracts, and would allow investors to buy and sell bitcoin without having to deal with the complexities and costs of custody and storage. However, the SEC has been reluctant to approve such a product, citing concerns about the lack of oversight and transparency in the underlying market. The SEC has also rejected several proposals for bitcoin ETFs in the past, including those from VanEck, Bitwise, and Wilshire Phoenix.
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The SEC’s statement does not mean that a spot bitcoin ETF is impossible in the future, but it does indicate that the current applications are inadequate and need to be revised or withdrawn. The SEC said that it welcomes engagement with potential applicants on how to address the issues it raised, and that it will continue to monitor developments in the digital asset space. The SEC also reminded investors to exercise caution when investing in any product related to bitcoin or other cryptocurrencies, and to do their own research before making any investment decisions.
Interestingly, Revolut US — one of the leading fintech platforms in the country, has announced that it will delist three popular cryptocurrencies from its app starting from September 1st, 2021. The affected coins are Cardano (ADA), Polygon (MATIC), and Solana (SOL).
According to a blog post published by Revolut US on August 25th, the decision to delist these coins was made due to regulatory uncertainty and compliance issues in the US market. The company stated that it has been working closely with its partner bank and regulators to ensure that it can offer a safe and compliant service to its customers, but that the current situation does not allow it to support these coins any longer.
Revolut US said that customers who hold any of these coins will have until August 31st to sell them or transfer them to an external wallet. After that date, customers will not be able to access their balances or perform any transactions with these coins. Revolut US also warned that customers who do not take action before the deadline may lose their funds permanently, as the company will not be able to recover them.
The announcement came as a shock to many Revolut US users, who expressed their disappointment and frustration on social media. Some users accused Revolut US of betraying its mission of democratizing finance and giving users more choice and control over their money. Others questioned the legitimacy and transparency of the company’s decision, and wondered if there were ulterior motives behind it.
Revolut US is not the first fintech platform to delist certain cryptocurrencies in the US market. Earlier this year, PayPal and Venmo also removed support for some coins, such as Dash (DASH) and Zcash (ZEC), citing similar reasons of regulatory compliance. However, Revolut US’s move is more significant, as it affects some of the most popular and widely used coins in the crypto space, with a combined market capitalization of over $100 billion at the time of writing.
The delisting of ADA, MATIC, and SOL also raises questions about the future of crypto regulation in the US, and how it will impact the innovation and adoption of this emerging technology. Many crypto enthusiasts and experts have been calling for more clarity and consistency from regulators, as well as more collaboration and dialogue between the public and private sectors. They argue that a more supportive and balanced regulatory framework is needed to foster innovation, protect consumers, and ensure fair competition in the crypto industry.