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U.S Senate Confirms New Pro-Crypto SEC Commissioner (Elad Roisman)

The United States Senate confirmed Elad Roisman as a member of the Securities and Exchange Commission during the session of September 5, 2018. This decision completes the five required members to complete all seats within the Commision.

Funds that Hold Cryptocurrencies Raises Questions, Says SECMr. Roisman, 37 years old, was confirmed as commissioner after serving for several years as chief counsel at the U.S. Senate Committee on Banking, Housing, and Urban Affairs.

Roisman, a Republican candidate was nominated to the Senate by White House during the month of June. Subsequently, on August 23, 2018, the Senate Banking Committee approved the nomination and yesterday, he was confirmed to take the position effectively.

Roisman replaces Michael S. Piwowar, a Republican commissioner who resigned his position within the SEC early this summer to take a job at the Milken Institute as executive director of its center for financial markets.

Comm. Elad Roisman: A Breath of Fresh Air In The S.E.C?

Roisman has several important challenges ahead of him. 2 of the most critical decisions in which he will play an important role are those related to a new set of rules and regulations governing the relationship between stockbrokers and their clients, as well as that of “renewing” the SEC’s vision regarding cryptocurrencies and the possibility of approving cryptocurrency ETFs.

Elad Roisman has been associated with having a pro-crypto stance. His role within the SEC is expected to support Comm Hester Peirce’s earlier initiative to open financial markets to the world of cryptocurrencies.

Speaking at a Senate Banking Committee hearing in July, Mr. Roisman expressed his way of thinking regarding ICO and blockchain technologies (minute 14:00). For the financial expert, the SEC should “approach these new challenges in a fair and transparent manner,” with a clear need to “examine and re-examine its rules, regulations, and guidelines” in order to adapt to the new standards of a market that has “evolved:”

“The U.S. capital markets are the envy of the world, and the importance of the SEC’s role in this cannot be overstated. Throughout its history, the dedicated commissioners and staff of the SEC have worked to preserve confidence as our markets grew and evolved.

To continue this, the SEC must examine and re-examine its rules, regulations, and guidelines to ensure that they are still working as intended to accomplish the SEC’s mission.

This is most recently manifested in areas such as data protection and cybersecurity, as well as the emergence of new investments and technologies such as initial coin offerings and blockchain.

It is essential that the SEC approach these new challenges in a fair and transparent manner, provide clarity and certainty to the markets and investors, and enforce the laws and regulations that hold market participants accountable.”

Elad Roisman

A Nice Panorama For Crypto Traders

With the confirmation of Elad Roisman, the SEC would have five members, 3 of whom see the cryptocurrency markets with favorable eyes. The configuration of the commission would be: Jay Clayton (anti), Robert Jackson, Jr. (pro), Hester Peirce (pro) and Elad Roisman (pro). The fifth one, Ms. Kara Stein can’t serve past December. According to Bloomberg, her successor could be Ms. Allison Herren Lee, her former aide.

With Mr. Roisman’s approval, a Bitcoin ETF is very much possible. So far the markets have not had a significant reaction, however, for those who are enthusiastic about the fundamental analysis this news could be of particular importance for future investments.

The post U.S Senate Confirms New Pro-Crypto SEC Commissioner (Elad Roisman) appeared first on Ethereum World News.

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Abra CEO Blames Biased SEC Process for Bitcoin ETF Rejection

Bitcoin (BTC), Exchange-Traded Fund—While the crypto markets exhibit continued price volatility, the industry focus remains on how the U.S. Securities & Exchange Commission will handle Bitcoin Exchange-Traded Funds going forward. While the SEC has thus far rejected all ETF proposals, the language in the rejection has given the industry some hope in the fact that the regulatory firm recognizes the growing potential of blockchain—just not the current iteration to produce an ETF. While analysts, industry forecasters and outside pundits weigh in on the reasoning for continued ETF denial, from the format of the proposal to the companies submitting them, Abra’s CEO Bill Barhydt has a different taken on the reasoning.

Abra, a cryptocurrency payment platform and app-based exchange, is not among the current crop of companies vying for the position as head of the first approved Bitcoin ETF. However its founder and CEO Bill Barhydt’s background on Wall Street has given him greater insight to the inner-workings of the SEC and led him to conclude that cryptocurrency is largely suffering from an image problem. Speaking in an interview with CNBC , Barhydt states that he does believe a Bitcoin ETF will reach approval stage by the SEC before year’s end, but the current holdup is being driven over a lack of familiarity between the regulatory group and crypto industry. Specifically, Barhydt cites that the cryptocurrency exchange leaders that are submitting applications for ETF-approval “don’t fit the mold” of the typical executive that the commission has historically dealt with.

As much as the SEC has given reasoning for rejecting thus-far submitted ETFs, which have all received similar language in the denial reply, Barhydt blames personality and industry profile for being at the heart of the problem. Essentially, the crypto industry does not fit the mold created by typical Wall Street interaction—a feature that could continue to cause delay in receiving approval,

“I think the issue with the SEC, quite frankly, is that the people who are doing the applications don’t fit mold of who the SEC is used to approving. I used to work for Goldman Sachs, but if you look at how I’m dressed you probably wouldn’t know it. So I probably, unfortunately, couldn’t go like I am here to a meeting at the SEC to say I’m applying for the ability to issue an ETF.”

In August, Gemini cryptocurrency exchange founders and high profile investors Tyler and Cameron Winklevoss’s bid for a Bitcoin ETF was rejected along with several other applications. VanEck, which has been at forefront of the ETF process and is favored to be the first to receive approval, had its proposed application delayed until the end of this month. In all, the crypto markets took a massive hit in valuation following the delayed/rejected action of the SEC, with all of late July and early August’s positive price gains being eroded in the span of a week. While the current trend in market pricing looks to be making a small recovery, with BTC clinging to $7000, altcoins continue to make a major hit—leading some to conclude that the hope of an ETF approval is still driving most of the price interest.

However, not everyone has been pleased with the overwhelming shift in focus of the industry and investment base towards greater regulation. Andreas Antonopoulos, a mainstay figure and one of the most genuine supporters of blockchain and cryptocurrency, claims that the Bitcoin ETF will do more harm than good. Myopic investors, particularly those looking to cryptocurrency as a pathway to fast profit, are hanging on SEC approval of an ETF as the leverage needed to spur ‘institutional investors’: the big Wall Street firms that are waiting for a less murky landscape before they start pouring money in. Cryptocurrency purists see increased regulation as a diversion from the real use of cryptocurrency and adoption for the technology.

Regardless, Barhydt is confident ETF approval will happen sometime in the near future,

“It’s going to happen in the next year, I would actually make a bet on it. There is too much demand for it.”

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