SEC Chair Clayton says Bitcoin needs to be ‘better regulated’ before it is traded on the major exchanges

Speaking at a CNBC press conference Jay Clayton said that bitcoin would need better regulation before being listed for trading on major traditional exchanges like NYSE or Nasdaq.

“If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or New York Stock Exchange ... they are sorely mistaken,” said Clayton. “We have to get to a place where we can be confident that trading is better regulated.”

These comments were made a few days after VanEck and SolidX's decision to withdraw their bitcoin ETF proposal. VanEck and SolidX withdrew the bid according to a September 17 filing to the Securities and Exchange Commission (SEC). All this came weeks after reports that VanEck and SolidX began to offer the sale of privately placed securities to “qualified institutional buyers.”

Bitcoin sentiment is still soft today and BTC/USD still trades 2.95% lower. The market took a massive hit after the announcement as the disappointment kicked in.