SEC

US lawmaker criticizes SEC enforcement director for not going after ‘big fish’ crypto exchanges

Representative Brad Sherman said the SEC’s enforcement case against Poloniex was like going after “small fish” compared to major exchanges, which may include Kraken and Coinbase.

Brad Sherman, the congressperson who previously called for banning cryptocurrencies in the United States, criticized the Securities and Exchange Commission’s (SEC) approach to enforcement among major crypto exchanges.

In a Tuesday hearing before the House Committee on Financial Services, Sherman said SEC enforcement director Gurbir Grewal needed to show “fortitude and courage” when pursuing securities cases against cryptocurrency exchanges in the United States. The lawmaker added that the SEC enforcement division had “gone after” XRP as a security, but not the crypto exchanges that processed “tens of thousands” transactions of the token.

“If XRP is a security — and you think it is, and I think it is, why are these crypto exchanges not in violation of law and is it enough that the crypto exchanges have said ‘well, having committed tens of thousands of violations in the past, we promise not to do any more in the future?’” asked Sherman. “Is that enough to get you off the hook for enforcement?”

Representative Brad Sherman addressing the House Committee on Financial Services on Tuesday

Grewal responded that he was unable to specify if the SEC enforcement division was investigating any crypto exchanges, but referred to a case brought against Poloniex in August 2021 for trading cryptocurrencies deemed securities to U.S. investors on its platform between July 2017 and November 2019. Sherman countered that the crypto trading platform was a “small fish” among other major exchanges, likely referring to Kraken, Coinbase, and Binance US:

“The big fish operating the major exchanges did many, many tens of thousands of transactions with XRP. You know it’s a security — that means they were illegally operating a securities exchange. They know it’s illegal because they stopped doing it, even though it was profitable […] I hope you focus on that.”

Both SEC chair Gary Gensler and Grewal cited concerns about cryptocurrency enforcement in the government department’s budget request for the 2023 fiscal year. In a written statement for the hearing, Grewal said the crypto market was becoming “increasingly sophisticated and the related misconduct becomes harder to detect and increasingly complex and international in nature.”

Related: SEC doubles down on crypto regulation by expanding unit

In May, President Joe Biden requested more than $2.1 billion for the SEC in FY2023, allowing the regulatory body to increase its enforcement division by 50 people, with 20 new hires expected in the regulator’s Cyber Unit, which includes the Crypto Assets and Cyber team. Senators Cynthia Lummis and Kirsten Gillibrand also introduced legislation in June proposing that the Commodity Futures Trading Commission, as opposed to the SEC, have authority over digital asset spot markets.

Celsius has finally filed for bankruptcy: Law Decoded, July 18-25

A crypto lending platform still hopes to stay afloat, but experts doubt such probability.

Reducing your initial debt of $820 million to just $0.013 over a month can’t be easy. And, it’s hardly surprising that such a heroic dash has led Celsius to bankruptcy. Last week, the crypto lending platform voluntarily filed petitions for Chapter 11 reorganization after closing off the last of its decentralized finance (DeFi) debts owed to Compound, Aave and Maker. 

Although a Chapter 11 bankruptcy allows a company to stay in business and restructure its obligations, and there are successful examples such as American Airlines, Delta, General Motors, Hertz and Marvel, some experts voice skepticism regarding Celsius’ chances to stay afloat. The proceedings could mean investors and customers of Celsius may not see their funds returned for the “foreseeable future,” similar to the fallout from the Mt. Gox hack in 2014, which is still ongoing.

And, the external legal pressure surely doesn’t help the platform. With the local Department of Financial Regulation (DFR) reminding users that the firm is not licensed to offer its services in the state, Vermont has become the sixth American state that issued a warning against Celsius.

One point to Ripple in a case against SEC

The United States Securities and Exchange Commission (SEC) has suffered a blow in its case against Ripple after a U.S. judge denied its claims for attorney-client privilege regarding internal documents related to the Hinman speech. In denying the motion, U.S. Magistrate Judge Sarah Netburn called out the SEC’s hypocrisy in arguing that the speech — in which a former official Bill Hinman suggested Ether (ETH) was not security — was a personal matter for Hinman while also claiming it should be protected because he received legal advice from the SEC to confirm the commission’s policies.

Continue reading

Andorra is one step closer to its Digital Assets Act 

A tiny European country nestled between France and Spain, Andorra, is swiftly moving to its crypto regulation framework — the respective Digital Assets Act was recently approved by the local government. Although cryptocurrencies are not legal tender in Andorra, and the Digital Assets Act makes no proposals surrounding means of exchange, the CEO of a local Bitcoin (BTC) business highlights that Andorra could adopt a Bitcoin standard, mining Bitcoin with renewable energy, taking on Bitcoin as a reserve asset and welcoming Bitcoin-centric companies from all around the world. 

Continue reading

Cryptocurrencies are to become a “financial product” in South Africa

The South African Reserve Bank is set to introduce regulations next year that will see cryptocurrencies classed and treated as financial assets to balance investor protection and innovation. With more than six million people in the country having cryptocurrency exposure, regulation of the space has long been a talking point — it will allow the sector to be monitored for money laundering, tax evasion and terrorism financing. And, of course, to comply with global guidelines set out by the Financial Action Task Force (FATF). 

Continue reading

SEC dismisses claims against John McAfee, fines accomplice for ICO promo

On October 5, 2020, the SEC alleged that McAfee and Watson promoted ICO investments on Twitter without disclosing that they were paid for them.

The United States Securities and Exchange Commission (SEC) obtained the final judgment for an initial coin offering (ICO) promotion scheme against late entrepreneur John McAfee and accomplice Jimmy Gale Watson, Jr., filed on October 5, 2020. 

In the original complaint, the SEC alleged that McAfee and Watson promoted ICO investments on Twitter without disclosing that they were paid for them. Watson allegedly assisted McAfee in negotiating promotional deals with ICO issuers and cashing out the crypto payments, among other pump-and-dump charges.

The U.S. District Court for the Southern District of New York found Watson guilty of violating the law and imposed a cumulative fine of $375,934.86. In addition, Watson has been barred from participating in ICO-related issuance, purchase, offer or sale. The litigation states:

“However, that such injunction shall not prevent Watson from purchasing or selling securities for his own personal accounts.”

Providing closure to the impending case, the SEC’s claims against McAfee were dismissed after the Commission filed a notice of death for the infamous entrepreneur.

Related: US Treasury calls for public comment on digital asset policy, following Biden’s executive order

The U.S. Treasury sought input from the public to include in reporting to the president on the possible implications of digital assets on finance and payment infrastructures. Sharing his views on the matter, Nellie Liang, Under Secretary of the Treasury for Domestic Finance stated:

“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams.”

Therefore, Liang hopes to gain input from Americans and market participants to understand better the impacts of mainstreaming crypto assets.

Crypto Biz: 3AC’s founders are nowhere to be found

Liquidators don’t know the whereabouts of Kyle Davies and Su Zhu. Meanwhile, Grayscale’s legal officer says the asset manager’s lawsuit against the SEC could take a while to play out.

In the world of crypto, there’s no such thing as “too big to fail.” Three Arrows Capital, once the most recognizable hedge fund in the industry, has essentially gone belly-up after its founders believed their own hype and decided to go full-degen mode during the worst macro climate of a generation. Since the proverbial shit hit the fan last month, founders Kyle Davies and Su Zhu have kept a very low profile. So low, in fact, that their whereabouts remain a mystery, according to court documents. 

This week’s Crypto Biz chronicles the latest developments surrounding Three Arrows Capital and explores Grayscale’s legal proceedings against the United States Securities and Exchange Commission (SEC).

Liquidators can subpoena 3AC founders despite ‘tricky issues’ with crypto assets

We may not know the whereabouts of Kyle Davies or Su Zhu, but that won’t stop liquidators from subpoenaing the founders of bankrupt Three Arrows Capital, also known as 3AC. Earlier this week, United States bankruptcy judge Martin Glenn issued an order giving 3AC liquidators permission to demand that the founders attend court. Apparently, Zhu and Davies haven’t been cooperating with their liquidators. Zhu broke his nearly one-month silence this week by alleging that the liquidators “baited” his firm. Whatever that means.

Grayscale legal officer says Bitcoin ETF litigation could take two years

Grayscale’s quest for a Bitcoin (BTC) exchange-traded fund (ETF) could get more complicated as the asset manager embarks on suing the SEC for denying its latest application. Specifically, Grayscale is trying to convert its GBTC product into an ETF, but securities regulators won’t let them because of “concerns” about manipulation in the spot BTC market. Craig Salm, Grayscale’s chief legal officer, said the litigation process could take up to two years before a resolution is reached. Who knows, by that time, the SEC may decide to waive its magic wand and approve another spot Bitcoin ETF.

Multicoin Capital raises $430M for new crypto startup fund

Crypto venture funding has slowed in recent months, but that hasn’t stopped major firms from continuing to raise serious capital. Prominent investor Multicoin Capital announced this week that it has launched a massive $430 million fund to bootstrap crypto and blockchain startups. The firm’s new “Venture Fund III” will allocate between $500,000 and $25 million to early-stage companies, with an increasing focus on decentralized autonomous organizations, the creator economy and consumer-facing products. 2022 is shaping up to be the biggest funding year ever for crypto.

Playboy to launch first ‘MetaMansion’ in The Sandbox

Iconic lifestyle brand Playboy is entering the Metaverse — and doing it tastefully, too. The company behind your dad’s favorite raunchy magazine has launched its first MetaMansion in The Sandbox, giving users access to a virtual version of the Playboy mansion. If you decide to pay a visit to the virtual property, you’ll be able to attend a host of gaming and social events and possibly collect nonfungible tokens (NFTs) in the future. Apparently, the MetaMansion builds on Playboy’s Rabbitar NFT project, which is comprised of 11,953 tokenized bunny avatars.

Don’t miss it! Why are crypto platforms going bankrupt?

The cryptocurrency market may never be the same after 2022 — and that could be a good thing or a bad thing. With companies like Voyager Digital, Three Arrows Capital and Celsius filing for bankruptcy, investors are worried about what comes next. Is your crypto safe being held on exchanges or lending platforms? In this week’s Market Report, I sat down with fellow analysts Jordan Finneseth, Marcel Pechman and Benton Yaun to discuss how the recent wave of bankruptcies will impact the market.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

SEC commissioner Allison Lee departs, readying financial regulator for Jaime Lizárraga

The U.S. Senate has already confirmed the nomination of Allison Lee’s replacement, Jaime Lizárraga, to work at the SEC for a term ending in 2027.

Allison Herren Lee, one of five members of the United States Securities and Exchange Commission’s board, has officially left the regulatory body after more than three years as a commissioner.

In a Friday announcement, chair Gary Gensler and commissioners Hester Peirce, Mark Uyeda and Caroline Crenshaw said Lee had left the SEC, where in 2005, she started as a staff attorney at the agency’s enforcement division at a regional office in Denver. She moved on to be appointed a commissioner in 2019 under the former presidential administration. She later served as acting chair to the regulatory body for three months until Gensler’s confirmation in April 2021.

“Commissioner Lee has been a stalwart advocate for strong and stable markets, including by emphasizing the need for market participants to maintain the highest ethical standards,” said the remaining commissioners in a joint statement.

Lee first announced her departure from the SEC in March, with President Joe Biden in April nominating her replacement, Jaime Lizárraga, a staffer for House Speaker Nancy Pelosi. The Senate confirmed Lizárraga’s nomination on June 16 for a term at the SEC ending on June 5, 2027.

During her time at the SEC, Lee said the commission needed to “evolve with changing technologies” in reference to crypto regulation, adding that the government body should maintain its principles. Lizárraga has largely made few, if any, public statements on crypto and blockchain. The Pelosi staffer was in government as lawmakers prepared legislation to handle the financial crisis of 2008 and was part of the efforts behind the 2010 Dodd-Frank Act.

Related: SEC doubles down on crypto regulation by expanding unit

The SEC, along with the Commodity Futures Trading Commission and Financial Crimes Enforcement Network, handles digital asset regulation in the United States, but with different jurisdictional claims, resulting in a patchwork approach that crypto firms must navigate to operate. It’s unclear what impact the departure of Lee and the addition of Lizárraga will potentially have on the regulation and enforcement of the crypto space.

SEC extends window to decide on ARK 21Shares spot Bitcoin ETF to August

J. Matthew DeLesDernier, assistant secretary for the SEC, said it had extended to allow for “sufficient time to consider the proposed rule change and the issues raised therein.”

The United States Securities and Exchange Commission (SEC) has pushed the deadline to approve or disapprove ARK 21Shares’ Bitcoin exchange-traded fund (ETF) to August 30.

According to a Tuesday filing from the SEC, the regulatory body extended the deadline for approving or disapproving the ARK 21Shares spot Bitcoin (BTC) ETF from July 16 for an additional 45 days to August 30. The application, originally filed with the SEC in May and published for comment in the Federal Register on June 1, includes a proposed rule change from the Chicago Board Options Exchange BZX Exchange.

Ark Invest partnered with Europe-based ETF issuer 21Shares to file for a spot Bitcoin ETF listed on Cboe BZX Exchange in 2021, but the SEC rejected its application in April. Under current rules, the regulatory body is able to delay its decision and open the investment offering to public comment for up to 180 days, suggesting that the SEC could provide a final answer by January 2023.

In the notice of the designation of a longer period, SEC assistant secretary J. Matthew DeLesDernier said it had chosen an extension to allow for “sufficient time to consider the proposed rule change and the issues raised therein.” The SEC has never approved an ETF with direct exposure to crypto but gave the green light to investment vehicles linked to BTC futures, including funds from Valkyrie and ProShares.

Related: Grayscale legal officer says Bitcoin ETF litigation could take two years

In June, when the SEC denied Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot BTC ETF, the investment manager filed a petition for courts to review the regulatory body’s decision. Grayscale senior legal strategist Donald Verrilli alleged in the filing that the SEC had acted “arbitrarily and capriciously” by “failing to apply consistent treatment to similar investment vehicles.”

WSJ editorial slams SEC’s ‘bewildering’ Bitcoin ETF denials

The editorial board has drawn attention to a two-pronged approach employed by SEC’s Gensler, which makes it practically impossible to get a spot Bitcoin product approved.

The Wall Street Journal Editorial Board has come out swinging against Gary Gensler’s “legendary” resistance to approving a spot Bitcoin (BTC) exchange-traded fund (ETF). 

The hard-hitting opinion piece, published on Wednesday, called out the Gensler-led Securities and Exchange Commission (SEC) for overt inconsistencies in how the commission handles applications for Bitcoin-related exchange-traded products (ETPs) compared to more traditional assets and other commodities.

So far, Gensler’s SEC has rejected every proposal for a spot Bitcoin ETP, including two in the last week from Grayscale and Bitwise, which resulted in Grayscale launching legal action against the SEC.

The editorial board said the SEC hold-up was even more “bewildering,” given the agency had approved several ETPs for Bitcoin futures last year.

These consistent rejections led SEC Commissioner Hester Peirce to declare Gensler’s resistance to spot crypto ETPs as “becoming legendary,” questioning:

“At what point, if any, does the increasing maturity of the Bitcoin spot markets and the success of similar products elsewhere tip the scale in favor of approval?”

The editorial board has also drawn attention to a two-pronged approach employed by Gensler, which makes it practically impossible to get a spot Bitcoin product approved.

This includes requiring ETP sponsors to demonstrate that a significant amount of Bitcoin trading occurs on a regulated market or that the underlying market must “possess a unique resistance to manipulation beyond the protections…of traditional markets.”

According to the WSJ, Gensler is “fully aware” that the first criteria simply cannot be met because almost all Bitcoin trading currently occurs on unregulated crypto exchanges.

The second criterion is also extremely difficult for sponsors to meet as the SEC has “arbitrarily established” a higher standard for spot Bitcoin ETPs without “explaining how to satisfy it.”

Related: The US Dept. of Commerce has 17 questions to help develop a crypto framework

Eric Balchunas, a senior ETF analyst at Bloomberg, told his 107,000 Twitter followers that it was “nice to see” the WSJ echo similar thoughts to his ETF analyst colleague James Seyffart — claiming that Gensler is “holding innovation hostage” to take control of the crypto market.

The piece comes one week after Grayscale launched legal action against the SEC for denying its application to launch a spot Bitcoin ETF — claiming that the SEC’s inconsistent rules concerning spot and futures Bitcoin ETPs contradict the law’s requirement that regulators apply “consistent treatment to similar investment vehicles.”

MiCa, AMLA and EU’s ‘wild west’ problem: Law Decoded, June 27-July 4

The Markets in Crypto-Assets passed the Tripartite negotiations, while the European Union anticipates a new body for AML regulation.

According to the European parliament member and rapporteur for the Markets in Crypto-Assets (MiCA) regulation Stefan Berger, the deal on landmark pan-European Union regulation had been finally struck amid the Tripartite negotiations. It “will put an end to the crypto wild west,” as French Minister for the Economy Bruno Le Maire hopes. Still, while raising a modest optimism among some stakeholders, MiCa’s final draft will surely make life harder for others. 

A prime example here is the case with stablecoins, which would get a daily transaction cap of 200 million euros under the new regulation. With Tether (USDT) and USD Coin’s (USDC) 24-hour daily volumes standing at 48.13 billion euros and 5.40 billion euros, respectively, the new guidelines could be interpreted as a sort of indirect ban on stablecoins. The provisional agreement will also see crypto asset providers (CASPs) needing authorization in order to operate in the EU, with the largest CASPS to be monitored by the European Securities and Markets Authority (ESMA).

European lawmakers clearly don’t like a “wild west” — to the point when they’re attaching the variations of this metaphor to almost anything they deem to need a fix. The same last week, European Parliament member Ernest Urtasun claimed to put an end to the “wild west of unregulated crypto” with a European Council agreement to form an Anti-Money Laundering (AML) body that will have the authority to supervise certain CASPs. The new regulator would probably get an obvious name of AMLA.

Surprise twist in Iowa

Two weeks between being fined for selling the unregistered securities and getting the very license it lacked — that’s what happened with a crypto lending platform BlockFi in the state of Iowa. The new license is a glimmer of good news for BlockFi, which was among the lending firms forced to liquidate some of the positions from venture firm Three Arrow Capital (3AC), with the latter unable to meet a margin call on its Bitcoin borrowings. 

Continue reading

Grayscale goes to court

Grayscale Investments has launched a legal challenge against the United States Securities and Exchange Commission (SEC) after being denied its application to convert its Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin exchange-traded fund (ETF). While the lawsuit has been filed to the United States Court of Appeals for the District of Columbia Circuit, a court ruling on the matter is not expected until Q3 2023 to Q1 2024, meaning that we may not see the GBTC going forward any time soon. 

Continue reading

How much income does regulation bring?

Surprising as it may sound, large regulatory landmarks do correlate with the crypto market leaps. At least according to financial services company New York Digital Investment Group (NYDIG), which studied Bitcoin (BTC) prices at regular intervals following regulatory events affecting digital asset taxation, accounting and payments, as well as decisions on the legality of service providers and the digital assets themselves. The results are somehow impressive: in the Americas, Bitcoin prices rose 160.4% in absolute terms 365 days after regulatory events and 32.3% in relative terms; in Europe, at 180.1% and 52.0%, respectively. 

Continue reading

MiCa, AMLA and EU’s ‘wild west’ problem: Law Decoded, June 27–July 4

The Markets in Crypto-Assets passed the Tripartite negotiations, while the European Union anticipates a new body for AML regulation.

According to European parliament member and rapporteur for the Markets in Crypto-Assets (MiCA) regulation Stefan Berger, the deal on landmark pan-European Union regulation has finally been struck amid the Tripartite negotiations. It “will put an end to the crypto wild west,” as French Minister for the Economy Bruno Le Maire hopes. Still, while raising a modest optimism among some stakeholders, MiCa’s final draft will surely make life harder for others. 

A prime example here is the case with stablecoins, which would get a daily transaction cap of 200 million euros under the new regulation. With Tether (USDT) and USD Coin’s (USDC) 24-hour daily volumes standing at 48.13 billion euros ($49.30 billion) and 5.40 billion euros ($5.53 billion), respectively, the new guidelines could be interpreted as a sort of indirect ban on stablecoins. The provisional agreement will also see crypto asset providers (CASPs) needing authorization to operate in the EU, with the largest CASPS to be monitored by the European Securities and Markets Authority (ESMA).

European lawmakers clearly don’t like a “wild west” — to the point when they’re attaching the variations of this metaphor to almost anything they deem as in need of a fix. The same last week, European Parliament member Ernest Urtasun claimed to put an end to the “wild west of unregulated crypto” with a European Council agreement to form an Anti-Money Laundering (AML) body that will have the authority to supervise certain CASPs. The new regulator would probably get an obvious name of AMLA.

Surprise twist in Iowa

Two weeks between being fined for selling the unregistered securities and getting the very license it lacked — that’s what happened with a crypto lending platform BlockFi in the state of Iowa. The new license is a glimmer of good news for BlockFi, which was among the lending firms forced to liquidate some of the positions from venture firm Three Arrow Capital (3AC), with the latter unable to meet a margin call on its Bitcoin borrowings. 

Continue reading

Grayscale goes to court

Grayscale Investments has launched a legal challenge against the United States Securities and Exchange Commission (SEC) after being denied its application to convert its Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin exchange-traded fund (ETF). While the lawsuit has been filed to the United States Court of Appeals for the District of Columbia Circuit, a court ruling on the matter is not expected until Q3 2023 to Q1 2024, meaning that we may not see the GBTC going forward any time soon. 

Continue reading

How much income does regulation bring?

Surprising as it may sound, large regulatory landmarks correlate with crypto market leaps — at least according to financial services company New York Digital Investment Group (NYDIG), which studied Bitcoin (BTC) prices at regular intervals following regulatory events affecting digital asset taxation, accounting and payments as well as decisions on the legality of service providers and the digital assets themselves. The results are somehow impressive: In the Americas, Bitcoin prices rose 160.4% in absolute terms 365 days after regulatory events and 32.3% in relative terms; in Europe, at 180.1% and 52.0%, respectively. 

Continue reading

Not giving up: VanEck refiles with SEC for spot Bitcoin ETF

VanEck believes nothing should prevent the SEC from approving a pure Bitcoin ETF after the regulator greenlighted Bitcoin futures ETFs in 2021.

VanEck, one of the first firms in the world to ever file for a Bitcoin (BTC) exchange-traded fund (ETF), is not giving up on its plans to launch a spot Bitcoin ETF in the United States.

The firm has refiled an application for a physically-backed Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).

Filed on June 24, VanEck’s latest Bitcoin ETF application comes months after the SEC rejected its previous spot Bitcoin ETF request on November 12, 2021. The securities regulator based its decision on the ETF on its alleged inability to meet standards to protect investors and the public interest as well as to “prevent fraudulent and manipulative acts and practices.”

In the latest filing, VanEck provided a wide number of reasons for the SEC to approve a Bitcoin ETF this time.

The ETF company argued that the lack of a U.S.-listed spot Bitcoin exchange-traded products (ETP) does not prevent U.S. funds from gaining exposure to Bitcoin. That is because many U.S. ETPs use Canadian BTC ETPs to gain exposure to spot BTC, VanEck argued, stating:

“Approving this proposal — and others like it — would provide U.S. ETFs and mutual funds with a U.S.-listed and regulated products to provide such access rather than relying on either flawed products or products listed and primarily regulated in other countries.”

As previously reported by Cointelegraph, Canada was one of the first countries in the world to debut a spot Bitcoin ETF with the launch of the Purpose Bitcoin ETF in February 2021.

VanEck went on to say that approving a spot Bitcoin ETF would be a logical step for the SEC after the authority decided to allow Bitcoin futures-based ETFs. As previously reported, VanEck’s BTC futures ETF started trading on the Chicago Board Options Exchange on November 16, 2021.

“After issuing the Bitcoin futures approvals which conclude the CME Bitcoin futures market is a regulated market […] the only consistent outcome would be approving spot Bitcoin ETPs on the basis that the Bitcoin futures market is also a regulated market of significant size as it relates to the Bitcoin spot market,” the new filing reads.

Related: Grayscale’s legal challenge to SEC sparks response from the community

According to Bloomberg ETF analyst Henry Jim, the deadline for VanEck’s latest spot Bitcoin ETF is March 3, 2023.

VanEck is known as one of the first U.S. firms to ever file for a Bitcoin futures ETF. The company originally filed for a physically-backed Bitcoin ETF in June 2018, but the SEC repeatedly postponed its decision over the proposal to eventually reject it three years later.