The ramifications of the SEC delaying a decision that would help cryptocurrency are felt for a second day, as prices tumble…
For a second day, the price of cryptocurrencies took another hit pretty much across the board following the news that the Securities & Exchange Commission (SEC) in the US delayed a key decision earlier this week. A decision that would have brought some much needed steadiness to the market.
The SEC had been due to issue a ruling on a proposed Bitcoin exchange traded fund (ETF). It’s been considering the plan from two companies – VanEck, an investment firm, and SolidX, a financial services company – to list the proposed fund on the Chicago Board of Exchange. To do so would, though, require a rule change from CBOE Global Markets Inc for that to happen, and that’s what the SEC has been mulling over.
Furthermore, it’s been revealed that the SEC has received over 1000 comments about the idea of listing SolidX Bitcoin shares, and those are all available to be read here.
The SEC has therefore bought itself more time, and has announced that it’s delaying its decision on the matter until September 30th. That is now “the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SRCboeBZX-2018-040)”.
Should the SEC give the trading of SolidX Bitcoin shares the nod, it’s regarded as a notable step forward in mainstream acceptance of cryptocurrencies, although there’s still clearly a lot of road ahead.
The markets didn’t react well to the SEC delaying its decision on Tuesday. Sizeable falls of up to nearly 14% were recorded overnight, with the likes of XRP, Ethereum and Tronix amongst those recording double digit falls. Bitcoin slumped back to $6504, after poking its head back above $7000 on Monday.
On Wednesday things got worse. Further tumbles across the board now mean that Bitcoin, for one, has lost 10% of its value in a week. At the time of this update, it sits at just above $6300, with no obvious sign of an immediate upturn.
The SEC’s official note on the decision delay can be found here.