SEC rejects Winklevoss Twins’ Bitcoin application

The application for a Bitcoin exchange-traded fund made by Tyler and Cameron Winklevoss has been rejected by the US Securities and Exchange Commission (SEC).

In a controvertial move, the SEC has again barred the Bats BZX Exchange from changing its rules regarding the listing and trading of shares from the Winklevoss Bitcoin Trust. The first application was rejected last February, and has now been so again.

In a press release detailing the decision, the organisation said: “The Commission is disapproving this proposed rule change because… BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act.

“In particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.”

SEC Commissioner Hester M. Peirce has since voiced her disagreement over the decision, saying: “I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market.

“More generally, the Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of bitcoin ETPs.”