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VanEck and SolidX’s “arguments as outlined in the memorandum comprehensively address the grounds the regulator had given in its 2017 disapproval of SolidX’s previous ETF application: a perceived failure to be consistent with Section 6(b)(5) of the Securities Exchange Act, which focuses on “prevent[ing]fraudulent and manipulative acts and practices,” according to Coin Telegraph.
Previously, the SEC argued that commodities exchange traded products were backed by robust futures markets, a point VanEck and SolidX cite in their favor because bitcoin futures currently trade on two well-known domestic exchanges (CBOE and CME) and more exchanges are mulling launching futures tied to digital currencies.
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