On Friday, the SEC denied the Winklevoss Fund as the first registered investment vehicle to make bitcoin investment accessible to everyone. This ETF would have made it so people could invest in bitcoin through all accounts including IRA’s and 401K accounts.
After it was revealed that the Winklevoss Fund would not be SEC approved Fortune reported that bitcoin value fell “18% from nearly $1,300 to $1,060”. It has since rebounded slightly.
According to Fortune, the SEC did not approve the Winklevoss Fund because “the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”.
I think that bitcoin has the necessary protection to protect investors and public interest. Although there is limited regulation I think that blockchain technology would have prevented fraud. The constantly growing database, the blockchain makes bitcoins nearly impossible to manipulate. Cash on the other hand is much easier to launder because all of the previous transactions do not remain attached to the currency itself. Also, I realize their is currently no regulation surrounding bitcoin. However, I wish the legislature would accept this is the future, and create the legislation. Instead of halting financial technology progress, like they are now.
https://www.forbes.com/sites/laurashin/2017/03/10/sec-rejects-winklevoss-bitcoin-etf-sending-price-tumbling/#166a393f643c