Official documents released by the SEC (Securities and Exchange Commission) have shown that the commission will be postponing its final decision regarding SolidX and VanEck’s Bitcoin ETF to the 30th of September.
Proposal Well Received By The Crypto Community
This announcement is coming just days after Van Eck availed a thirteen-page long report addressing the issues the commission had with an ETF that was both companies (VanEck and SolidX) were floating last year, which the commission rejected.
The ETF proposal was filed in June this year by both companies with the SEC. many people were expecting that the proposal would be approved measuring by the amount of interest the ETF proposal was generating within the crypto community. Also judging by the announcement made by the SEC, saying that the commission had received a lot of comments, 1300, regarding the proposed rule change, many saw it as an indication that the ETF would go through.
Ruling On The Proposal Postponed
This announcement, which was published online, states that the SEC is going to postpone its decision on the VanECK and SolidX proposal of a Bitcoin ETF. The commission has clarified that the Securities Exchange act does give it the permission to extend its decision past the forty-five days allowed from the period of publication. This is however only possible in the event that the commission finds it prudent to extend this period so as have enough time to mull over the rule change proposal.
The document says that the commission has, in accordance to the Act’s Section 19(b)(2), designated the 30th of September as the date before which the commission will have decided on whether or not it will be approving the proposal, or instituting the proceedings that will be determining whether the proposed rule change will be disapproved.
Even with 30th September being instituted as the date before which the commission will have a concrete decision regarding the proposed rule change, SEC still has the power to further postpone the ruling and extend it past the said date. Going by the Exchange Act, the commission has the power to extend its ruling by a total of 240 days past the date of publishing of the proposal in the Federal Register.
This decision to postpone the final ruling has come just days in the wake of the SEC commissioners’ completion of the review of the Bitcoin ETF that was proposed by the Winklevoss twins, Cameron and Tyler. Most of the commissioners backed the decision, made in March, on the Bitcoin ETF that it had initially rejected when the proposal was first tabled.
This decision was criticized by one of the commissioners, Hester M. Price, who dissented the previous decision, saying that the proposed rule change did fulfill all the requisite statutory standards.
Not The First Ruling To Be Postponed
This has not been the only instance that the commission has decided to push forward an ETF related decision. Just last month the commission postponed till September its decision regarding the Direxion Investments filing.