Cboe Global Markets Files Amended Applications for Bitcoin ETFs with Surveillance-Sharing Agreements with Coinbase.
Exchange operator Cboe Global Markets (CBOE.Z) has taken a significant step towards listing and trading shares of three spot bitcoin exchange-traded funds (ETFs).
In an effort to meet regulatory standards set by the U.S. Securities and Exchange Commission (SEC), Cboe has filed amended applications that include surveillance-sharing agreements with prominent crypto-trading platform Coinbase (COIN.O).
Despite previous rejections, Cboe aims to address regulatory concerns with enhanced surveillance measures.
Coinbase Faces SEC Lawsuit Amidst Growing Scrutiny on Crypto Intermediaries
Coinbase, a leading cryptocurrency exchange platform, finds itself in legal trouble. The SEC has sued the company for failure to register as an exchange and evading disclosure requirements. The SEC-Coinbase lawsuit is part of the SEC’s broader crackdown on crypto intermediaries. Signaling increased scrutiny and regulatory pressure on the cryptocurrency industry.
Despite the SEC lawsuit, Coinbase challenges the regulator’s authority. Asserting that the assets traded on its platform do not fall under securities regulations.
Regulatory Compliance Efforts – Cboe Revision of Bitcoin ETF Application
To pave the way for the approval of its Bitcoin ETFs, Cboe Global Markets has made important revisions to the initial Cboe Bitcoin ETF applications.
These amendments in Cboe application now include collaboration with Coinbase to ensure comprehensive market surveillance.
By sharing data and insights, Cboe and Coinbase seek to provide the SEC with the necessary tools to monitor the underlying bitcoin markets effectively. This step reflects a proactive approach to addressing the SEC’s concerns regarding market manipulation and illicit activities.
Coinbase’s Assertion of Regulatory Compliance
Despite the SEC lawsuit, Coinbase remains firm in asserting its compliance with existing regulations. The company argues that the assets traded on its platform, including cryptocurrencies, should not be classified as securities.
Moreover, coinbase maintains that it has taken proactive measures to align with legal requirements and protect the interests of its users.
Future Prospects and Market Impact of Cboe-Coinbase Collaboration
The collaboration between Cboe and Coinbase, along with Cboe’s amended ETF applications, demonstrates a concerted effort to improve regulatory compliance and establish a secure framework for the trading of bitcoin-based investment products.
If approved by the SEC, the listing of these ETFs could provide new avenues for investors to access the cryptocurrency market, potentially increasing mainstream adoption and liquidity.
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