In a transfer that comes as little shock to these accustomed to the regulatory panorama surrounding the fledgling crypto trade, the U.S. Securities and Change Fee (SEC) has as soon as once more denied an utility from Ark Funding Administration and 21Shares to record a spot bitcoin exchange-traded fund (ETF) on the Cboe BZX Change.

This marks the second time that the much-feared regulator has shot down the proposal, with an identical effort being beforehand rejected in April.

Undeterred, the duo submitted a brand new utility final Could, however the company has as soon as once more cited issues over fraud and manipulation as the first causes for its resolution.

The SEC highlighted that BZX had didn’t display that its proposal was according to the necessities surrounding the prevention of malevolent practices.

The company’s resolution relies on its perception that the Bitcoin market remains to be inclined to fraud and manipulation, and {that a} complete surveillance-sharing settlement with a regulated market of great dimension is required so as to detect and deter such practices.

The SEC argues that BZX has didn’t deal with threat components which might be particular to Bitcoin. 

It stays to be seen whether or not Ark and 21Shares will make one other try and record a spot bitcoin ETF, however within the present regulatory local weather, it appears unlikely that the SEC will change its stance on the matter anytime quickly.