The SEC official representative Hester Peirce expressed disagreement with her own department, which for the second time rejected to launch the Winklevoss Bitcoin Trust.
According to Hester Peirce official statement on the SEC website, the Commission was considering whether the proposal from the Winklevoss twins complies with the Securities Exchange Act of 1934. The SEC representative pointed out that according to the application of the Winklevoss brothers, Winklevoss Bitcoin Trust will impose obligations and register market makers in order to prevent fraud and manipulation.
According to Hester Peirce, another reason why the SEC refused to launch Bitcoin ETF is the difference in prices on various exchanges. In her opinion, the creation of a bitcoin-based investment fund will facilitate arbitrage transactions and equalize prices at various platforms.
Hester Peirce said that the Commission’s decision also means that the regulator does not welcome innovative solutions in the US markets. She stated that in the future such standpoint might have some consequences.