The SEC Will Delay the Approval of Crypto ETF for Certain Reasons
In a conference held in Manhattan, New York City, Yesterday, Jay Clayton who is the Chairman of the Securities and Exchange Commission (SEC), spoke to some reporters, stating reasons behind the delay with issuing an approval for a Crypto ETFs (exchange-traded fund). He made it known that an improved market surveillance and custody for cryptocurrencies must be in place before it is convenient for the SEC to approve a crypto ETF.
Clayton is Worried
One of his worries is the fact that he believes that there could be an unfair price assessment for investors, according to the platform from which it was gotten from. This is simply because the same metrics are not used to monitor the prices in the market.
The SEC which has rejected nine different ETF applications earlier this year pointed out that market manipulation is still a major worry for it.
Crypto traders, investors and advocates, are now pleading and looking up to the US regulator for an approval of Bitcoin ETFs, after getting frustrated by the several rejections.
As regards this, Jay Clayton went on to say that, “What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation. It’s an issue that needs to be addressed before I would be comfortable.”
He went on to state other concerns he has, and it was centred around the storage of digital assets.
He stated that: “We’ve seen some thefts around digital assets that make you scratch your head. We care that the assets underlying that ETF has good custody and that they’re not going to disappear.”
Effect of a Bitcoin ETF Approval
Once a Bitcoin ETF is approved, it will pave the way for others, thereby affecting the prices in the market, but Clayton insisted that Crypto custody “needs to be improved and hardened”, irrespective of the fact that big guns like Goldman Sachs, Coinbase, and Fidelity have invested in the space already. Clayton went further to warn ICOs, stating that before they apply for ETF approval, they should ensure that their coins are already securities.
