- Regulatory assurances are needed for ETF approval
- He believes it won’t happen anytime soon
Last week, former SEC chairman Jay Clayton was interviewed by CNBC. In it, he expressed the view that approval of a bitcoin-ETF would have been “difficult to prevent.”. Also, Clayton commented on the extent to which the digital asset industry is advancing and explained why regulatory developments would make approval favorable.
The increase in spot bitcoin-ETF offerings was a surprise development this year, clearly indicating a change of heart in traditional financial circles. However, the ultimate interest in these organizations depends on the SEC’s decision regarding approval of their creation.
Jay Clayton argues that approval of Bitcoin ETFs will be “difficult to prevent.”. He stated:
“It is a very significant fact that we have institutions that have a better understanding of markets than anyone else. And they claim to be willing to put their reputations on this. These institutions argue that the differences have been resolved, and the spot product is now less hidden and more efficient for investors.”
At the same time, the former SEC chief also noted that the regulatory process is thorough, and so he does not expect quick answers. However, he said that regulatory assurances would be needed for approval, which would depend on further development by the SEC.
JPMorgan, America’s largest bank, said recently that if the SEC approves a spot bitcoin-ETF, it may not have much impact on the cryptocurrency market.