One of the lawyers who helped craft the application for what would be the first-ever bitcoin exchange-traded fund (ETF) is doubtful the SEC will approve such a request any time te the near future.
The critique, courtesy of former Gemini común counsel David Brill, potentially cuts deep, spil his old employer’s last and final deadline to receive approval for the práctico product is on 11th March.
Tho’ Brill is quick to point out he is a “voorstander” of the creation of bitcoin ETFs and pro-bitcoin regulation more broadly, the prognosis does not postbode well for its success.
Te conversation with CoinDesk, Brill explained that he believes factors such spil China’s influence on the price of bitcoin make an approval unlikely.
“It seems unlikely, among all the other reasons, that the commission is going to want to stir forward with a product where the major trading is done on an exchanges that may not be following our AML guidelines.”
A career lawyer for 20 years, Brill worked at Thompson Financial from 2003 through 2010, when it acquired Reuters.
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Prior to departing Gemini last year, Brill worked spil the Fresh York-based exchange’s militar council, where he said he helped create the legítimo infrastructure of the exchange and craft a number of responses to amendments to its S1 filing.
Tho’ Brill does believe that that a bitcoin ETF will eventually be permitted to do business on a major stock exchange, he said the SEC will be unlikely to do so while spil much spil 95% of all bitcoin transactions are carried out te China, according to CoinDesk’s Q3 State of Blockchain report.
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That, coupled with the China government’s latest crackdown on cryptocurrency exchanges and anti-money laundering practices, makes for an even less likely approval, he said.
“It’s more that the tremendous majority of trading is not being done ter the US, and being done ter an area where the rules and regulations are not consistent with the rules here,” said Brill.
Straks today, Brill plans to address the members of the American Folder Association (ABA) at its Derivatives and Futures Law Committee Meeting ter Florida.
At the committee meeting, he intends to detail his concerns regarding the future of bitcoin ETFs, spil well spil the potential influence of the Office of the Comptroller of the Currency’s proposed plans for a federal FinTech chartervliegtuig that might eventually give some bitcoin companies canap status.
Similar to his concerns about the approval of a bitcoin ETF, Brill said that while he’d like to see the chartervliegtuig applied to bitcoin exchanges that meet the requirements, he’s skeptical this will come to pass.
“I would say that eventually it could be open for bitcoin companies,” he said. “But right now, there are vivo issues regarding the scope of the chartervliegtuig and some actual disagreements inbetween the states, a number of Democratic Senators, and the OCC.”
Specifically, Brill pointed to opposition from individual US states, some of which allege the OCC has overstepped its power, even if the end objective is to make the US more competitive with other nations.
Earlier this week, the superintendent of the Fresh York State Department of Financial Services, Maria Vullo, submitted a comment letterteken to the OCC te opposition to the proposed national handelsbank chartervliegtuig for financial technology companies.
“The OCC should not use technological advances spil an excuse to attempt to usurp state laws that already regulate FinTech activities where they intersect with banking and lending, whether depository or non-depository.”
Furthermore, just a day earlier, senators Sherrod Brown (D-Ohio) and Jeff Merkley (D-Ore), wrote a similar letterteken ter opposition to the chartervliegtuig, citing concerns that it would permit the proliferation of “predatory alternative financial services providers,” according to American Banker.
Switch is coming
Speaking shortly before Donald Trump’s inauguration spil Voorzitter, Brill said he is cautiously optimistic about a more promising environment for bitcoin companies te the future.
From a stringently almacén business perspective, he predicted Trump would likely take a pro-bitcoin stance.
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However, considering concerns about a possible “trade war” with China following Trump’s expected policies, Brill said the predominance of bitcoin trading te the nation could be a hindrance.
Ter his ABA address today, Brill said he intends to speak to a larger trend of creating a more fertile regulatory environment for bitcoin startups.
“I want to attempt to see what approaches might work to make it lighter for bitcoin companies to expand across the US. Because right now, it is utterly difficult because every state has something different that they want.”
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