BlackRock´s Spot Bitcoin ETF leaves backdoor open to regulators
BlackRock´s Bitcoin ETF
I have previously written about the surprise the SEC must have gotten finding out that BlackRock's partner in Surveillance-Sharing Agreement, SSA, was in fact Coinbase. And they were to serve as the watchmen if you like, to surveil and prevent market manipulation. And if they find any data that was looking suspicious, they are to pass it on to regulators, ETF providers, and listing exchanges.
What now has come to light with BlackRock´s Bitcoin ETF application is a second similar program to the SSA. But if we take a closer look at it we will see that its intent and purpose is a very different one. And this could very well be the thing that tips the scales in favor of BlackRock. What I am talking about is an information-sharing inclusion. And this really puts the shoe on the other foot so to say.
As with any new markets, if BlackRock's name's going to be on it, we're going to make sure it's safe and sound and protected, -Larry Fink BlackRock CEO
What I mean by that is unlike the SSA where Coinbase can pass on data they deem suspicious. This deal allows the regulators to demand extra background. They can in a sense pull data from the exchange. The information in question could be about specific trades or traders, and the agreement also compels a crypto exchange to share data up to and including personally identifiable information, such as the customer’s name and address. This means they pretty much can get any information from the exchange that they have.
There are however some safeguards preventing the regulators from simply going fishing. They have to have a very specific lure and tackle. Meaning they have to know what or whom they are looking for before they can go looking. But as you and I both know that is something that can change quickly. Either with new regulations or with lenient judges. And with the correct pretext, almost anything can be shoved through.
Larry Fink, CEO of BlackRock
And I sincerely wish that Larry Fink would protect the little people as well as he seems to protect their big-money customers. But who am I kidding, the odds of that happening are probably not even close to the odds of winning the lottery. So I might as well just buy a ticket and join the rich people.
Hopefully tho if we get this out in front we can at least stop some mam and pops from investing in their ETF if it becomes a reality. The comment section is all yours.
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