United States Federal Government Shutdown Derailed Bitcoin ETF Talks, Says VanEck CEO – CoinDesk

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A closely-watched proposition to list a bitcoin exchange-traded fund on the Cboe BZX Exchange was withdrawn Wednesday– and the continuous partial shutdown of the U.S. government seems to blame.

As CoinDesk reported, the filing was”temporarily withdrawn”, according to VanEck director of digital possession strategy Gabor Gurbacs. He also said that “we are actively working with regulators and major market individuals to develop proper market structure frameworks for a Bitcoin ETF and digital assets in general.”

Jan van Eck, the primary executive officer of VanEck, showed on CNBC Wednesday that the shutdown’s impact on the Securities and Exchange Commission (SEC) hindered the procedure between regulators and those seeking the ETF’s approval. According to van Eck, the discussions around the proposition– initially submitted last June and based on subsequent approval hold-ups– “had to stop.”

Speaking with CNBC’s Bob Pisani, van Eck described:”So, you understand the SEC is impacted by the shutdown … we were engaged in discussions with the SEC about the bitcoin-related issues, custody, market manipulation, costs, which had to stop. Therefore, rather of attempting to slip through or something, we just had the application pulled and we will re-file and re-engage in the conversations when the SEC gets going once again.”

Pressed by Pisani on whether the proposition would have been turned down anyway due to concerns about custody and bitcoin’s prices, van Eck included that “we believe we actually have quite strong answers to those [concerns], but we just require to truly demonstrate it extremely, extremely clearly and convincingly to the regulators.”

“We were trying to do that however we undoubtedly can’t have conferences while they’re shut down,” he added.

Jake Chervinsky, a legal representative with Kobre & & Kim, told CoinDesk that, in his view, that “the ETF sponsors made the ideal choice to withdraw their proposal,” going on to keep in mind that “the shutdown was the final nail in the ETF’s casket, since the SEC doesn’t have sufficient staff members available to evaluate or approve any proposed guideline modifications right now.”

“Withdrawing the proposition stops the SEC from providing another order stating the bitcoin markets aren’t ready for an ETF. The choice to withdraw is a choice to ‘live to combat another day’– Jan Van Eck has actually stated he will re-file the proposition after the shutdown, so he probably desired to prevent setting a new precedent that would make it more difficult to prosper in the future,” Chervinsky composed in an e-mail.

The partial shutdown, which impacts a variety of government departments consisting of the U.S. Treasury (of which the SEC belongs), began on Dec. 22 following disputes over the funding of a proposed wall on the U.S.-Mexico border sought by U.S. President Donald Trump. It is the longest government shutdown in U.S. history.

Caught in the crossfire of the shutdown are a variety of other tasks in the crypto area, including bitcoin futures platform Bakkt and crypto trading platform ErisX, both of which are awaiting the Product Futures Exchange Commission– an independent U.S. agency that has also been impacted by the funding lapse– for approvals.

Capitol Hill image via Shutterstock