BlackRock warns Bitcoin trade value will crash if SEC labels it security
BlackRock took the example of the Ripple vs SEC case & suggested the SEC body not to declare Bitcoin as a security asset.
The United States Securities and Exchange Commission (SEC) is the top financial regulatory body. Over the past couple of years, the regulatory body tried to regulate the crypto sector under traditional securities laws, for which people criticised the SEC body many times. Under the leadership of the SEC chairman Gary Gensler, this regulator sued multiple crypto companies blindly.
In the recently updated spot ETF filing with the SEC body, the top fund manager BlackRock talked about the impact of potentially classifying Bitcoin as a security.
According to BlackRock, if the SEC body declares Bitcoin as a security asset then it will cause a significant downfall in the trade price of this biggest digital asset because it will be hard to handle.
Furthermore, the fund manager also mentioned the Ripple (XRP) vs SEC lawsuit in the filing and explained how the SEC’s action against the XRP token caused a downfall in the trade volume from $100 billion to $10 billion.
Notably in the past, the SEC body never called Bitcoin a security asset. In the majority of the statements of the SEC’s body, we can see that they mentioned Bitcoin as one & only one commodity asset.
Over the past couple of years, the SEC body called the majority of the cryptocurrencies as a security token, except Bitcoin. But on the other hand, the Commodities Futures Trading Commission (CFTC) passed contradictory statements to the SEC body.
Bitcoin spot ETF applications
In the present time, nearly a dozen Bitcoin spot ETF applications are in queue to get regulatory approval from the SEC body but this new statement by BlackRock created a very big question in the mind of the Bitcoin spot ETF applicants.
Today the trade price of Bitcoin crashed 7% following a news related to MtGox repayment news but some people claimed that the dump in the trade price of this high marketcap asset took placed because of the potential chances of the SEC body to declare Bitcoin as a security token.
Read also: Bitcoin crashes 7% as Mtgox announced repayment plan
