After the Bitcoin ETF filings by BlackRock and Co, the crypto market is waiting for the SEC. The former chief explains how the US Securities and Exchange Commission could proceed.
In an interview with CNBC, former SEC chief Jay Clayton shared his perspective on the evolving regulatory landscape for Bitcoin ETFs.
He explained that he was initially skeptical of the Bitcoin market due to concerns about practices such as washtrading and market manipulation.
However, he said he found it remarkable that “institutions that know the markets better than anyone else” are now looking to invest in the Bitcoin market. Recently, BlackRock, Fidelity and numerous other asset managers filed a Bitcoin spot ETF filing with the SEC.
He followed the argument after the spot product was more efficient for investors and concluded from the asset managers’ perspective that the “Bitcoin spot ETF should be approved.”
“If institutions can demonstrate that the spot market has similar efficacy to the futures market, it will be difficult for the SEC to avoid approving a Bitcoin ETF,” it continued.
Clayton cautioned, however, that this could take time, citing the thoroughness required of the regulatory process.
Image by Petre Barlea from Pixabay
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