New SEC Chairman Comments on a Bitcoin ETF Approval: Investor Protection, Market Manipulation
During a recent interview with FOX Business, Jay Clayton, the chairman of the U.S. Securities and Exchange Commission (SEC), explained that he is not against the digital currency, but he has concerns over manipulation. He also mentioned that he wants to ensure that investors are protected in this market.
Jay Clayton Wants To Protect Investors
The U.S SEC has analyzed the possibility to approve the first Bitcoin exchange-traded fund (ETF). Until now, the regulatory agency did not approve any Bitcoin ETF and might not do it in the near future. According to Chairman Clayton, they want to be sure that investors are protected against manipulation in the market.
About manipulation and the crypto market, Clayton commented:
“What I’m concerned about at the moment is if it can be reasonably demonstrated that the underlying trading is generally not manipulated, it’s happening on reliable venues with good rules and that custody is something we can feel comfortable about.” … “I think this technology has and is already demonstrating pretty significant promise, but it’s demonstrating significant promise in the places where it’s consistent with our approach to capital raising in the past.”
The crypto community criticized Clayton for rejecting the ETF proposal presented by Cameron and Tyler Winklevoss. An ETF would allow both retail investors and institutions to have access to the cryptocurrency market.
At the moment, there are other proposals presented for a Bitcoin ETF. The Chicago Board Options Exchange (CBOE) and SolidX decided to re-submit their application for an ETF at the beginning of the year. Moreover, Bitwise Asset Management has also filed an application that explicitly claims that it will be solving the regulatory concerns presented by the US watchdog.
Clayton said that the technology behind virtual currencies has already demonstrated significant promise. However, he said that it has demonstrated significant promise in the places where it’s consistent with their approach to capital raising in the past.
Earlier this week, Mr. Clayton commented that there are several digital assets that cannot be considered securities under U.S. laws. He stated that the definition of a security can change as time passes for a specific asset.