- Jay Clayton clarified the SEC’s position on Bitcoin ETF.
- The industry needs proper custodial solutions and tools to prevent price manipulations.
The head of the US Securities and Exchange Commission (SEC) Jay Clayton explained why the regulator hesitates with the decision on bitcoin ETFs.
Speaking in the interview with CNBC, Mr. Clayton said that the commission wants to make sure that the market is free from manipulations. Moreover, the industry desperately needs high-quality custodian solutions that might be approved by the regulatory authorities, he added.
He explained that the SEC is working on the issue, but there are a couple of things to be sorted out. First, we need custodian services to securely store cryptocurrencies. Jay Clayton emphasized that that was one of the cornerstone requirements for all applicants. Then the market has to create appropriate tools to deal with price manipulations.
The SEC has complicated rules and surveillance procedures for stock markets, but there is no such thing for cryptocurrencies, he added.
Notably, the head of the regulator confessed that cryptocurrencies are not like equities or bonds, that’s why the existing rules are not applicable.
It is worth noting that cryptocurrency exchanges Coinbase and Gemini has launched custodial services along with Fidelity and Bakkt platforms. However, it is impossible to monitor price manipulations on unregulated or poorly regulated international venues. So, the chances are that Bitcoin ETFs will go live much later than it might have been expected.
BEST BROKERS TO TRADE CRYPTO
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.