SEC Commissioner: Bitcoin ETF Will Only Be Approved When Markets Are Liquid and Transparent

Robert Jackson, a U. S. Securities and Exchange Commission (SEC) commissioner, has recently affirmed that the industry needs to mature before the institution will greenlight any crypto ETF. He affirmed that the markets are not yet transparent or liquid enough and that there is a lot of disagreement on how to move forward from here.

Robert Jackson is kind of suspicious of Bitcoin, actually, but he seems to be open for the change as well. He affirmed that the agency will have a considerably more positive view of BTC when the market finally adds the big players (institutional investors) and is more transparent, less controversial and illiquid.

So far, the SEC has rejected two Bitcoin exchange-traded funds (ETFs). Both of them were sent out by the Winkless Twins, Tyler and Cameron. They own Gemini, a crypto exchange based in New York, the heart of the financial world. The first rejection happened in March 2017 and the other one came a year later, in June 2018.

At the time, the SEC affirmed that the company failed to show how their ETF could prevent fraud and market manipulation, which the SEC affirmed were widespread in the market at the time.

This year, the SEC is supposed to be making the decision on the SolidX VanEck Bitcoin ETF. However, the decision was postponed once more back in May. While the postponement wasn’t as bad as a rejection, we can be a long way from the awaited approval.

The main hint that the process may take too long is the recent research made by Bitwise, which proved that most of the BTC trading volume is currently fake. Several exchanges are still engaged in wash trading in order to fake volumes. This is what the SEC is against and unless a solution is actually found, the situation will remain the same.

SEC Commissioners Disagree On Bitcoin

One of the most troubling points might be that the SEC commissioners do not actually agree with a lot. People like him and the chairman of SEC Jay Clayton are not very friendly with Bitcoin at all. He seems very reluctant to approve the proposal, as he believes that BTC is not free from the scams that marked it so badly.

However, the SEC Commissioner Hester Peirce, known as the “Crypto Mom”, is very BTC-friendly. She wants the ETF but was unable to reach the majority of the votes so far. During the Winklevoss ETF, she was the only vote in favor. She also defends the idea that the crypto laws are simply too old and that we need new laws and regulation for this industry.

This makes the commissioners often at odds when they have to discuss the crypto world. While Peirce sees “arcane rules” and problems with the current legislation, some see the legislation as effective and BTC as dangerous for investors.

The truth is clear: Bitcoin still has to clean up its game more before it can see the ETF approved. There is no way around the fact that several scam Initial Coin Offerings (ICOs) and market manipulation have caused problems. Now, it is the time to prove that all of this is a part of the past.

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