‘Surveillance Sharing Agreement’ Governing Bitcoin ETF Applications, Will SEC Allow Coinbase? | CoinDesk JAPAN

On the 30th, Cboe BZX Exchange signed a “monitoring sharing agreement” when multiple Bitcoin ETF issuers resubmitted their Bitcoin ETF application documents as an exchange scheduled to be listed. The name of Coinbase, a major US crypto asset trading company, was specified as the location.

Triggered by BlackRock’s filing, Fidelity0, WisdomTree, VanEck, ARK Invest, Galaxy/Invesco followed, followed by the SEC (U.S.). The Securities and Exchange Commission (SEC) is about to successfully launch a Bitcoin ETF that has been rejected for years. BlackRock filed with Nasdaq, but other asset managers and others are working with Cboe (Chicago Mercantile Exchange).

According to the Wall Street Journal, the SEC said on the 30th that part of the Bitcoin ETF application was “insufficient” because it did not disclose information such as which exchanges to use specifically for the “monitoring sharing agreement”. He said.

In a resubmitted application in response to the SEC’s remarks, the Seebo BZX exchange named Coinbase as a partner in the surveillance sharing agreement, noting that it “constitutes a significant portion of US dollar-denominated bitcoin trading in the United States.” .

The SEC has argued that surveillance-sharing agreements with markets of “substantial size” are essential to prevent market manipulation and other undesirable behavior and to protect consumers. The lack of such an agreement has played a large part in rejecting Bitcoin ETF applications in the past.

The SEC has not yet formally confirmed that it is reviewing the application. The examination body is 45 days, but it can be extended up to a total of 240 days.

Complicating the SEC’s move may be the fact that it sued Coinbase in early June for allegedly operating an unregistered stock exchange, broker and clearinghouse. However, the SEC does not claim Bitcoin to be a security, and SEC Chairman Gensler has frequently referred to Bitcoin as an example of a digital asset that is not a security.

At the same time, however, it is also unclear whether the SEC will recognize Coinbase as a “substantial regulated market” for bitcoin, an exchange worthy of a surveillance-sharing agreement.

｜Translation: CoinDesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Shutterstock
｜Original: Coinbase Will Be Surveillance Partner for Fidelity, Other Bitcoin ETFs, Refiled Applications Say