Jake Chervinsky Says No Automatic Approval of BTC ETF; Credit Suisse Sounds the Siren Shutdown may Contract US Economy
Jake Chervinsky, a Washington-based securities lawyer, says the 27 February deadline for the VanEck/SolidX bitcoin exchange-traded fund will not be approved automatically as a reflex of the government shutdown. He explains the deadline is compelled by Federal law, and therefore, the shutdown does not influence it.
Chervinsky tells that, despite the temporary closure of US government offices, the Securities and Exchange Commission has enough personnel, including most staff in the Division of Trading and Markets to proceed with crucial activities ensuring ‘an orderly shutdown of operations.’
Proposed rule changes are tackled by the Division of Trading and Markets.
According to the lawyer, two things are possible in the event of approval. One is that the SEC will permit automatic approval - since it has been approved beforehand, or two, the residual SEC manpower will be inhibited from functioning.
BTC ETF will be Prohibited from Automatic Approval
Chervinsky posits that a BTC ETF will be impeded from reflexive approval stating an example when the SEC stretched the deadline for Nasdaq PHLX.
Postulating that the shutdown will endure beyond the 27 February deadline, he says a prospect for a decision is slim and the possibility of rejection is more plausible than approval.
The Washington litigator also voices his opinion on Bakkt which is awaiting approval from the Commodity Futures Trading Commission. He comments there is no statutory time limit for the CFTC. It can postpone indefinitely. ‘Don’t expect anything on Bakkt until after the shutdown.’ Chervinsky infers.
Credit Suisse Rings Warning of Economic Consequence
While politicians are in a deadlock on border security funding, the Swiss investment bank, Credit Suisse, says a contracted US economy is probable within Q1 of 2019. An analyst from the bank reasons the current shutdown occurred prior to tax return season. If tax refunds continue to be deferred, it can negatively affect the economy short term costing billions of dollars.
About a fourth of government offices are closed. Roughly 800,000 government workers are preparing themselves for another missed paycheck.
The partial shutdown of the US government enters its 32nd day. This is the longest government shutdown on record.