The SEC’s Chairman explained the issues with Bitcoin ETF

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.