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SEC Disapproves VanEck Bitcoin ETF, But Here’s What Crypto Enthusiasts Can Take From The Rejection

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The Securities and Exchange Commission, SEC had until Nov. 14 to make a decision regarding whether to approve the VanEck Bitcoin ETF — the first exchange-traded fund in a long list of many “spot” bitcoin ETFs on the application desk of the regulator, or not. But finally, the SEC has disapproved of it, citing that the Bitcoin spot market is prone to “fraud and manipulation”.

SEC Rejects VanEck’s Spot-based Bitcoin ETF

According to a Friday filing, the SEC rejected a proposal for a rule change from the Cboe BZX Exchange, that will allow it to list and trade shares of VanEck’s Bitcoin (BTC) Trust. Without mincing words, the SEC stated that such a rule change in favor of approving the ETF, would be at the detriment of investors and public interest, not minding how such a rule would favor fraudulent and manipulative acts and practices.

Interestingly, this rejection was very much expected in the crypto community based on two recent happenings;

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Firstly, SEC Chair Gary Gensler, has always been clear about the commision’s reservations about expanding crypto offerings, particularly a “spot” Bitcoin ETF. All along, he claimed that there can only be anything like that, if there is a clear rule defining which regulatory agencies have control over the various crypto spaces, such as crypto exchanges.

Another indication that the rejection was coming, is the legislation that came wrapped along with the recent infrastructure bill, which places onerous reporting requirements on crypto.

Little wonder that industry experts including Bloomberg senior ETF analyst Eric Balchunas claimed the SEC was highly unlikely to approve the VanEck fund, a prediction which ultimately came to be spot on.

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What Then Can Crypto Enthusiasts Take Away From This Rejection?

Knowing fully well that the SEC actually did delay making a decision on the application at least twice before today, there’s some glimmer of hope in there. So it is fully understandable how, now that the maximum 240-day review period is over, the decision that was made must be made.

But then, a constant question on everyone’s mind would be if crypto enthusiasts are deluding themselves to think that a bitcoin ETF will ever be forthcoming.

The major issue is a jurisdictional one, a complex jurisdictional issue at that. It is regarding whether it should be regulated by the SEC or the Commodity Futures Trading Commission CFTC.

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Now, while Bitcoin is a commodity and typically should be under the control of the CFTC, a Bitcoin ETF is a security, which would come under the jurisdiction of the SEC. So the SEC may be forced to maintain the status quo, until there is a clear regulatory authority over other parts of the crypto ecosystem, like the exchanges.

In short, it’s about to be a very long wait for a bitcoin ETF, but never write off the possibility.

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Solana set to be the ‘Bitcoin Killer’?

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A blockchain with the ability to perform thousands of transactions per second must be the next Bitcoin. Sam Bankman-Fried believes SOL has the potential to become the next Bitcoin since the Solana blockchain can execute 50,000 transactions per second. 

Sam Bankman-Fried (SBF), in a recent interview with Kitco, praised Solana for its potential to expand to millions of transactions per second. According to the FTX CEO, this makes Solana a critical component of cryptocurrency acceptance and the next Bitcoin.

The scalability of Solana could aid its evolution into a new Ethereum or Bitcoin. 

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“I am optimistic about Solana. She has every chance of doing this, which is very interesting, I think.’

Analyst bullish on SOL

Influential investors are positive on Solana, which is helping altcoin gain traction. 

With a growth in institutional acceptance, venturefounder, a cryptocurrency analyst, feels that Solana could end up competing with Ethereum. 

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“More Crypto Online” cryptocurrency analysts are positive on Solana. As the cryptocurrency price trend reverses, analysts forecast a price rise to a new all-time high of $305. 

During the crypto massacre on Black Friday, the price of Solana fell below $200. The price of the altcoin has recovered and is now trading near $200 at the time of writing. Over the last two months, there has been a surge in institutional intake and capital rotation into Solana.

At the time of writing, SOL is trading at $196.63, up 0.6% in the last 24 hours.the resistance on the upside is at $199.94. However in case of a decline, the support on the downside is at $190.68.  

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El Salvador’s President Has A few Words For Bank Of England’s Chief

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El Salvador’s President has a few words for Bank of England’s chief who recently expressed worries about the country’s Bitcoin adoption.

Check out his relevant tweet below.

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A commenter said: “Before bitcoin nobody around the world cared about El Salvador now there are competing interests either supporting or attacking El Salvador. El Salvador is now relevant.”

Someone else posted this: “Exactly what i been saying! My family is from el salvador, and my whole life not a single soul i ever met here in the U.S even knew about the country, and if they did, they only heard of it because of gang affiliation… nothing else. Bukele is making waves!!!”

On the other hand, a follower said: “The Bank of England’s Point of Concern: “….It concerns me that a country would choose it as its national currency. What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.” Seems a legitimate worry.”

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Bitcoin adoption concerning?

CryptoSlate notes the fact that Bailey said the move to adopt Bitcoin within a dual currency system was concerning, while also adding that volatility would impact most detrimentally.

This isn’t the first time that Bailey warned of the “dangers” of crypto.

Back in May, Bailey said cryptos have no intrinsic value and that investors should be prepared to lose all their money.

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At the moment of writing this article, BTC is trading in the red and the king coin is priced at $54,667.

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Bitcoin skeptic Saule Omarova to be rejected as Biden’s nominee for OCC in win for crypto

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  • Saule Omarova was nominated to head OCC and it looked bleak for the future of cryptocurrencies as she is an outspoken critic of Bitcoin.
  • New reports reveal that some Democratic senators in U.S Congress will reject her, and with all Republicans united against her, she will most likely not assume office.

Saule Omarova, a Bitcoin critic who was nominated for one of the most important financial regulatory jobs in the U.S, is looking unlikely to go through Senate confirmation. According to new reports, some Democratic Senators have rejected the Biden pick, particularly opposing her hardline stance against big banks. With Republican Senators all against her, she looks unlikely to be the next Comptroller of the Currency.

Omarova was nominated by the White House in September to take over from the Acting OCC, Michael Hsu. As CNF reported at the time, the cryptocurrency community joined the banking fraternity to ask questions of what would be of her reign. Omarova is an outspoken critic of the big banks, having consistently criticized government bailouts. She has also suggested that the Federal Reserve should be allowed to serve Americans, effectively wiping out the commercial banks.

For cryptocurrencies, the future looked just as bleak. She has previously stated that she believes they “benefit mainly the dysfunctional financial system we already have.”

In her Senate grilling two weeks ago, she held on to her anti-Bitcoin views. Responding to crypto-friendly Senator Cynthia Lummis‘ question on whether Bitcoin threatens national security, she stated:

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I’m not an expert on Bitcoin but I’d worry if all our financial transactions were up to some blockchain system where various actors who might actually be located in other countries, not particularly friendly to us, control the functioning of the system.

Omarova to be rejected

According to reports in Washington, Omarova is set to be rejected in Senate. Already, virtually all Republican senators have said they will reject her. Many of them have even attacked her on personal terms, as well as her ‘socialist-leaning’ beliefs.

Axios reports that five Democratic Senators have joined the anti-Omarova bandwagon as well. The five told Ohio Senator Sherrod Brown, who heads the Senate Banking Committee of their dissent. If they vote against her, the Kazakhstan-born academic will stand virtually no chance as the house is almost divided in half between Republicans and Democrats.

However, despite the opposition, the White House continues to back her publicly. A White House official told Axios:

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The White House continues to strongly support her historic nomination. Saule Omarova is eminently qualified for this position. She has been treated unfairly since her nomination with unacceptable red-baiting from Republicans like it’s the McCarthy era.

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