The SEC Can Have a Better Oversight of the Crypto Industry, Through ETFs — VanEck
Gabor Gurbacs, the director of Digital Assets Strategy at VanEck, has strongly advised the Securities and Exchange Commission (SEC) not to rule against the bitcoin ETF it currently has under review. The reason he gave was that approving the ETF would give the SEC an opportunity to regulate the crypto market.
SEC rejects Nine Bitcoin ETF Proposal
This was made known in a recent interview Gurbacs had with CNBC Crypto Trader. A previous report has made it known that the SEC has rejected nine bitcoin ETF proposals so far. However, the agency still has the bitcoin ETF proposal filed by VanEck in collaboration with SolidX under review. The result of the review will be made public by December 29 this year or February 1 the next.
In the interview, Gurbacs also stated that taking aside the fact that approving the ETF will present the agency with a perfect avenue to effectively regulate the industry, it will also help bring institutional money into the blockchain industry via security. His reason for this is because ETFs will be better prepared to maximize investor protection and minimize counterparty risks.
He further stated that:
“Right now, 90 to 95 percent of the digital assets space is retail. So people invest via trading platforms that offer low securities and safeties. Investors are not used to it,”
For the nine ETF proposals rejected, the agency has made it known that its concern for market surveillance and manipulation in the crypto spot trade was the reason behind this rejection.
Taking the agency’s concerns into consideration, VanEck has modified its ETF application.
Gurbacs also stated that:
“If the agency do well to approve their ETF application, the action is going to pave the way for both regulators and industry companies to understand how crypto fits into the federal regulatory framework.”
