Bitcoin to SEC: We Don't Need Ya

The SEC application for a new Bitcoin ETF was rejected yesterday.  Bitcoin prices were widely expected to drop to around $800, but they held firm at $1165 in mid-day Saturday exchange pricing.

Approval by the SEC was expected to drive the price of bitcoin to $3000.  At the rate bitcoin is growing is will get there on its own within a year.

ETF’s have traditionally enabled large Wall St. investors to hold an asset class they are not able to acquire by putting it into a package that can be owned or traded.   Bitcoin is highly desireable because it is mathematically limited and fully transparent via the blockchain, a major computer science innovation.

The irony of one of the reasons for the rejection was not lost:

Since at least 1990, the Commission has expressed the view that the ability of a national securities exchange to enter into surveillance-sharing agreements “furthers the protection of investors and the public interest because it will enable the [e]xchange to conduct prompt investigations into possible trading violations and other regulatory improprieties.” 89 The Commission has also long held that surveillance-sharing agreements are important in the context of exchange listing of derivative security products, such as equity options.

Bitcoin of course has far more transparency than any electronic security, because the blockchain makes every single transaction immediately visible to anyone.  This is of course somethig that is NOT desirable by the big banks, who profit from the obscurity.

Once Wall St. gains access to an asset class, price manipulation and suppression can be accomplished with the application of fractional reserve fake money.  Naked shorting and rehypothecation of the underlying assets happen every day on Wall St.  Bitcoin is best left independent and OUTSIDE the banking system.