SEC Delays Decision on Bitcoin ETF

The deputy secretary of the SEC has pushed back the date to approve SolidX's request to list a bitcoin ETF on the New York Stock Exchange.

Typically, the SEC has 45 days from the time an application is filed in the federal register to approve a measure, but as we learned last month from a similar application, that timeline can be extended significantly.

In line with this, SEC deputy secretary Robert W Errett pushed back the deadline to approve the SolidX bitcoin ETF from 16th September in a notice published to the federal register last week.

Errett wrote:

"The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change."

The rule change that could result in the first bitcoin ETF on a major stock exchange was published for comment to the federal register on 2nd August, and the Commission received no responses.

The race to the finish

The situation closely mirrors what happened in August when the SEC made a similar decision regarding the application submitted by Tyler and Cameron Winklevoss to list the Winklevoss Bitcoin Trust on the Bats exchange.

According to Section 19(b)(2) of the Securities Exchange Act of 1934, the financial regulator still has the option to extend the period another 45 days, and after that, another 90 days.

During the initial 180-day period, the SEC staff can approve the rule change. But if the SEC staff are unable to reach a decision by the end of the 180-day period, another 60-day extension could afford the commissioners themselves a chance to make a decision.

Founded in early 2014, SolidX has so far raised $3m venture capital from Liberty City Ventures and others to build financial instruments for institutional bitcoin investors.

The new deadline for the SolidX Bitcoin Trust decision is 31st October.

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