4 ms·

I find the document somewhat shockingly long. Almost like it is designed to confuse and create roadblocks. Can someone summarize what it means?

• woodruffw 4y ago
  It's a legal document. A lot of the length here is citations for prior rulings (take a look at Pages 3 and 4, for example). It's not "designed to confuse," but it also isn't intended to be light reading. The TL;DR is that the SEC does not believe that the Grayscale ETF can meet the requirements stipulated for an "Exchange-Traded Product" under the Exchange Act. In particular, the SEC found that a proposed rule change that would have allowed for the ETF violated the requirements of the Act under Section 6(b)(5). All of this is covered on Page 2. Subsequent pages cover precedent, various conditions under which other ETFs have been approved ("surveillance-sharing agreements"), and an extended justification for rejecting the proposed rule change.
• dpierce9 4y ago
  This is a thorough explanation of their reasoning with pointers to relevant laws and rules. Their position is that the law doesn’t allow them to approve this and they say which laws and why. What else do you want? A 140 character limit? Would you have preferred a stamp that say ‘Denied’ with no explanation? Congress requires agencies to explain themselves. This is a good thing and a sign that decisions aren’t arbitrary and that things are working.