SEC Commissioner Kara Stein Shares Bitcoin ETF Approval Clarity, Promotes Investor Safety
Virtual currencies have been a very important topic during this year. Although we are in a bear market, companies continued to invest in the space trying to offer better products and services. One of the main topics discussed in 2018 was Bitcoin ETFs and when they would be approved by the SEC.
The U.S. Securities and Exchange Commission has rejected several Bitcoin ETF proposals during the last months. This is something that the market took in a very negative way, but without panicking. There are companies and an entire community working in order for a crypto-related ETF to be approved by the SEC at the beginning of the coming year.
According to the American attorney Kara Stein, which is also an SEC Commissioner, talked during an interview with Bloomberg about the current regulatory framework of virtual currencies. Although she did not provide concluding answers about some issues, she clarified certain things that the market did not know about.
It seems that each cryptocurrency asset will be analysed particularly for it to be considered as a security or not. However, there are other tokens in the market, such as ICO coins, that have been considered securities, and indeed, they have not been registered as securities, something that means they are illegal.
About what they consider a cryptocurrency, she said:
“We determine whether it is a security or not and leave whether it’s a currency or not to others. But I think it’s going to depend on the form of the product that has been presented, because Bitcoin can be, backed by blockchain technology. So I see many folks in the market thinking through how they can use blockchain to make what they do better.”
However, she did not comment on whether the market will see a Bitcoin ETF in 2019, but she mentioned that it will everything depend on specific facts and circumstances.
About Bitcoin and cryptocurrency ETFs she said that they have been working with several companies that introduced proposals about crypto ETFs. She then explained that they took the proposals very seriously and that they look at several critical issues, including valuation, liquidity, custody, etc.
She compared an ETF with car safety issues saying that ‘a car needs to have seat belts and airbags before it can be fully operational.’ The same is related to Bitcoin ETF, which should have all the aforementioned characteristics.
We have also written at BitcoinExchangeGuide that Mike Novogratz believes that Bitcoin futures contract launched by Bakkt could change SEC’s viewpoint on crypto ETFs. With the Bakkt platform, the market will have more liquidity and a regulated custody service.
However, the last decision must be taken by the US SEC and an ETF could be finally approved in the coming months.