The U.S. SEC is seeking public comments on Bitcoin spot ETF listing applications

ChainCatcher news, the SEC stated in a letter on Friday that it is seeking public comment on the application for the first Bitcoin spot ETF listed on the Cboe BZX Exchange.

First, the SEC asked the public for their views on whether the "proposed ETF can be protected from 'fraudulent and manipulative acts and practices,' and whether the Bitcoin market is inherently susceptible to manipulation." This question is at the core of the SEC's hesitation in approving Bitcoin spot ETFs so far.

The second question is whether commentators agree with the BZX Exchange's view that the CME (CME Bitcoin futures trading platform) represents a substantial regulated market related to spot Bitcoin. The SEC is particularly interested in knowing whether those attempting to manipulate the Bitcoin market must trade on the CME.

The SEC's final question is whether commentators agree with the exchange's statement that reaching a supervisory sharing agreement with Coinbase would help detect, investigate, and prevent fraud and manipulation related to commodity trust shares.