VanEck ETF delayed by SEC – again
A year is apparently not enough time for the SEC to make a decision
Almost a year ago, VanEck and SolidX submitted a rule change proposal to the Securities and Exchange Commission (SEC) in an effort to introduce a cryptocurrency exchange-traded fund (ETF). The SEC took virtually every day of the time allotted to reach a decision, but still wasn’t able to come to a conclusion. VanEck resubmitted the proposal earlier this year and the SEC has announced that it needs more time to review the application. Just under a year and the SEC still cannot make up its mind. It’s no wonder that people get frustrated with bureaucratic red tape.
The SEC had until today to issue its decision, in accordance with the commission’s internal policies. However, it can also extend the deadline if it feels it needs more time to consider a rule change proposal, and has now postponed making a decision once again.
In announcing the most recent delay, the SEC stated, “The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”
The SEC has repeatedly stated that it is delaying – and sometimes rejecting – the proposals over concerns of possible market manipulation. However, even some of the commission’s own personnel have pointed out that the SEC doesn’t have the authority to reject a proposal because of the potential for manipulation. In addition, if that were cause for rejection, virtually all investment vehicles would need to be yanked.
The commission now has until August to rule on the proposal. However, given its track record, it will most likely announce another delay, making the final date October 18. The crypto community shouldn’t expect a positive outcome when the SEC finally gets around to making a decision.