US Regulators Playing Double Standards for Bitcoin

Gabor Gurbacs of VanEck is of the opinion that US regulators have not done well for Bitcoin by refusing the Bitcoin exchange-traded funds (ETF).

The director of VanEck and an authority in digital assets, Gabor Gurbacs, has recalled that US regulators are yet to encourage Bitcoin ETF.

At Keiser Report, Gurbacs said:

“There’s a persistent double standard against Bitcoin and digital assets, which I think is wrong.”

Reasons for Bitcoin ETF refusal

Bitcoin ETF is just like any other financial product that can be bought and sold on the major stock markets. Bitcoin ETF can be bought and sold in cash or with BTC. This provides a means of accessing Bitcoins through the conventional markets and brokers.

Many companies have met the US Securities and Exchange Commission (SEC) for a proposal on BTC ETF within the last three years. Unfortunately, not one of them has been approved till date. For example, VanEck and SolidX teamed up for this purpose and made a proposal to SEC but it faced a lot of delays which made the duo discontinue the bid.

One of the reasons the regulators are giving for not approving Bitcoin ETF is that they are not sure if Bitcoin has true price action especially if there is manipulation in the market. But Keiser and Gurbacs have said that this excuse is not substantial.

Gurbacs speaks for Bitcoin price action

Gurbacs responded to SEC’s reasons for denying BTC ETF by stating that he has proven that BTC’s price discovery is even better than some traditional assets. Gurbacs said his company, VanEck, and its startup, MV Index Solutions, came together to develop a proof for this.

According to Gurbacs, price discovery is not the problem with the approval of BTC ETF. He said:

“A number of our clients of this subsidiary have approved registered funds in Switzerland, Canada, and Japan and other places, so I think it’s important to know that global regulators have recognized that we have solved this problem, and, sooner or later the U.S. regulators will recognize it as well.”

On a sad note, Wilshire Phoenix’s Bitcoin ETF proposal was also denied in February 2020. However, there is hope that soon, US regulators will have a better understanding of this and begin to make approvals.

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