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U.S. regulators have double standards when it comes to Bitcoin, Gurbacs says

June 7, 2020

According to VanEck director and digital asset specialist Gabor Gurbacs, publicly traded Bitcoin funds (BTC) have been unfairly rejected by U.S. regulators.

“There is an ongoing double standard for Bitcoin and digital assets, which I think is wrong.”Gurbacs told presenter Max Keizer in a recent episode of the Keizer report.

Bushel refuses the Bitcoin ETF

In its simplest form, a Bitcoin ETF is a financial product that is officially traded on the major stock markets, with stocks being an exposure to the price of Bitcoin.. Depending on the product, a Bitcoin ETF can be secured by cash or BTC. This path essentially enables Bitcoin employees to invest and trade using traditional market methods and agents.

U.S. regulators have double standards when it comes to Bitcoin, Gurbacs saysU.S. regulators have double standards when it comes to Bitcoin, Gurbacs says

In the past two to three years, the U.S. Securities and Exchange Commission has declined a large number of Bitcoin ETFs. VanEck, working with SolidX, introduced one of Bitcoin’s most notable ETFs, which faced a variety of delays and difficulties before dropping its proposal.

To approve a Bitcoin ETF, regulators need proof that Bitcoin has a real price movement or “real pricing”.against market manipulation. Comparing the situation with other available traditional market ETFs, Keizer said that the pricing argument is not correct. Gurbacs agreed with this idea.

Gurbacs defends Bitcoin’s price action

It is noted that Bitcoin maintains efficient pricing, even better than certain goods on the marketGurbacs said it had provided evidence of such data to regulators. According to Gurbacs, VanEck and its subsidiary MV Index Solutions have also developed regulated indices to appeal to regulators.

“I think they understand this area a little better,” Gurbacs said of the regulators. “I don’t think pricing and pricing are a big problem,” he said, adding, “In fact, we solved it.”

“Several of our clients of this subsidiary have approved registered funds in Switzerland, Canada and Japan and elsewhere. I think it is important to know that global regulators have recognized that we have solved this problem, and sooner or later the regulators of the United States will recognize it too. “

However, the regulators have not yet arrived. Alternative investment firm Wilshire Phoenix faced one of Bitcoin ETF’s recent rejections in February 2020.

Cointelegraph contacted VanEck for further comments from Gurbacs, but received no response at the time of printing. This article will be updated accordingly if a response is received.