HomeTop StoriesCboe exchange partners with Coinbase on bitcoin market surveillance in ETF push

Cboe exchange partners with Coinbase on bitcoin market surveillance in ETF push

By John McCrank

NEW YORK (Reuters) – Exchange operator Cboe Global Markets on Tuesday filed amended applications to list and trade shares of three spot bitcoin exchange-traded funds, including one from Fidelity, to grant supervisory sharing agreements with crypto trading platform Coinbase. add.

Shares of Coinbase closed 9.8% to $89.15 on Tuesday, reaching their highest level since August 16 last year.

The U.S. Securities and Exchange Commission has rejected dozens of mock bitcoin ETFs in recent years, regularly saying the exchange proposals fall short of standards designed to prevent fraudulent and manipulative practices and protect investors and the public interest.

To comply with the standards, an exchange could demonstrate that it has “an extensive oversight sharing agreement with a regulated market of significant size with respect to the underlying or reference bitcoin assets,” the SEC said.

Nasdaq filed again with the SEC on June 29 to list a spot bitcoin ETF from BlackRock, the world’s largest asset manager, which also included a supervisory sharing agreement with Coinbase.

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Cboe had previously said it expected to reach such an agreement with Coinbase, which attracted about half of US dollar bitcoin trade on its platform in May.

The SEC last month sued Coinbase for failing to register as an exchange and circumventing disclosure requirements designed to protect investors as part of a broader crackdown on crypto brokers.

Coinbase said in a letter filed last month in Manhattan federal court that it will ask a judge to quash the SEC lawsuit, arguing that the regulator has no jurisdiction to file civil claims because the crypto assets traded on its platform are not “investment contracts”, and therefore not collateral.

(Reporting by John McCrank in New York; editing by Matthew Lewis)

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