SEC Commissioner Mark Uyeda: Despite agreeing to approve a Bitcoin spot ETF, the SEC’s rationale for expediting approval is flawed

U.S. SEC Commissioner Mark T. Uyeda issued a statement on the official website saying that although he has voted to support the SEC’s approval of the Bitcoin spot ETF, Uyeda raised three strong concerns about the approval order: 1. The approval order attempts to confirm the physical Bitcoin that was previously rejected by judicial review. The applicability of the ETP’s “significant market size” test; 2. The approval order creates new, previously unspecified approval standards; 3. The approval order conceals the SEC’s true motivation for accelerating the approval application. He emphasized that this method of analysis is essentially performance supervision and may have long-term effects on future legal analysis. Uyeda pointed out that the SEC adopted unique legal standards when considering Bitcoin spot ETPs, requiring exchanges to establish comprehensive monitoring and sharing agreements with markets of “significant scale”, which is different from the requirements for other commodity-based ETPs. He also noted that a new basis for approval was needed due to the SEC’s decision to ignore the D.C. Circuit Court of Appeals’ ruling and hold that the Bitcoin ETF failed the “significant market” test. The approval order provided the basis for approval based on analysis in the ARK 21Shares Bitcoin ETF application, which determined that Bitcoin spot prices are highly correlated with Bitcoin futures prices. Uyeda criticized this approach, arguing that it discards the “significant market” test originally set up to ban Bitcoin spot ETPs. Finally, Uyeda questioned the SEC’s rationale for accelerating the approval application, believing that the actual motive may be to prevent the first listed Bitcoin spot ETP from gaining market dominance. While he agreed with the issuance of the approval order, he objected to its legal analysis. According to previous news, Fox Business reporter Eleanor Terrett said on the In the end, the issue of ETF was passed by a vote of 3:2. Finally, the SEC officially approved 11 spot Bitcoin ETFs.