SEC Seeks Public Feedback For Franklin Templeton and Hashdex Spot Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) wants public opinion on the spot Bitcoin (BTC) ETF applications of Franklin Templeton and Hashdex.
In an announcement on Nov 28, the Commission highlighted the next phase in the scrutiny of spot BTC ETF applications filed by both companies after several weeks of uncertainty.
The SEC has requested official public comments to aid its decision on whether to approve or reject the spot ETF approval and its Forms 19b-4.
Form 19b-4 is a document approved by the Trading and Markets Division of the SEC for public disclosure of certain details on an application before a potential approval.
According to the release, the financial regulator seeks information primarily regarding market manipulation and fraud concerns alongside the issue of Coinbase being the custodian and price discovery efforts.
This continues to be a recurring issue as the SEC has rejected all previous spot Bitcoin ETF applications citing market manipulation concerns with the crypto community pushing back by citing similar approvals in other sectors and calling Gary Gensler’s approach to the market as stifling rapid development.
“The Commission is providing notice of the grounds for disapproval under consideration… the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.”
The Commission explained that the institution of any proceeding is not conclusive proof that the SEC has reached a decision concerning issues relating to the ETF but a call for interested persons to provide comments geared towards a rule change.
This latest development is standard procedures for ETF applications under review by the SEC
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