Bitcoin Needs Optimal Regulations Before Major Exchange Listings, SEC Chair Affirms
Jay Clayton, the chairman of the U. S. Securities and Exchange Commission, recently stated that Bitcoin (BTC) needs to be better regulated before it can be traded on major exchanges.
According to him, the crypto markets are largely unregulated and prone to manipulation. Bitcoin, he affirmed, does not have the same discovery process that many assets have in exchanges such as Nasdaq and the New York Stock Exchange (NYSE).
He believes that society needs to reach a place in which Bitcoin is better regulated before it is widely adopted. People need confidence that they can trust the market. Price reports, he affirmed, do not indicate price discovery.
Clayton also stated that the exchanges need to create more protection for their clients before the big investors come in. Insurance and protection against hackers are two important points in this regard.
Related to all this, there are reports that most Bitcoin trading is fake since the start of the year, which compromises the image of the industry even more.
The Bitcoin ETF Is Far Away
All these claims make it clear that the awaited Bitcoin exchange-traded fund (ETF) will not be a reality anytime soon. Clayton has often affirmed that there is a lot of work to be done before the ETF is real, despite noting that some progress is, indeed, being made.
Because of this, the SEC is most likely going to reject the Bitcoin ETF proposals of Wilshire Phoenix and Bitwise Asset Management. The other ETF proposal, the one made by VanEck/SolidX, was withdrawn by the company, as they feared that approval was unlikely.