The U.S. Securities and Exchange Commission (SEC) will review the rejection orders of nine bitcoin ETFs which were issued on Wednesday.
“Yesterday’s staff orders disapproving SRO rules related to a number of bitcoin ETFs are stayed pending Commission review,” SEC Commissioner, Hester Peirce said in a tweet.
The SEC had on Wednesday disapproved rule changes that would have allowed the trading of Bitcoin ETFs by from Proshares, GraniteShares, and Direxion—a total of nine proposals. In three separate rejection letters published Wednesday evening, SEC staff informed of the rejections.
Commissioner Peirce explained that the Commission, through the Chairman and Commissioners, delegates some tasks to its staff who acts on behalf of the commission. She tweeted:
“In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here,” Peirce wrote.
In response to Peirce’s comment, former SEC commissioner Michael Piwowar explained that it takes only one commissioner to order a review of a staff decision. After the review, however, it would require a majority vote from the commissioners to effect the outcome.
Decision Stayed NOT Reversed
According to Commissioner Peirce, the earlier decisions have not be reversed just yet as they remain valid pending the outcome of the review. In a letter to Eugene Schlanger, Counsel NYSE Group, SEC secretary, Brent Fields stated that “the August 22 order is stayed until the Commission orders otherwise.” The same was repeated in two other letters with respect to the Proshares, and GraniteShares proposals. “The Office of the Secretary will notify you of any pertinent action taken by the Commission,” Fields concluded.
It is unclear how long the review process will take as the Commissioner did not give any timeline.