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Essential Upgrades Needed [19659007] SEC President Explains Improvements for Approval u Bitcoin FNB "width =" 300 "height =" 318 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/11/clayton-profile-283×300.png 283w, https: // news.bitcoin.com/wp-content/uploads/2018/11/clayton-profile-768×814.png 768w, https://news.bitcoin.com/wp-content/uploads/2018/11/clayton-profile-966×1024 .png 966w, https://news.bitcoin.com/wp-content/uploads/2018/11/clayton-profile-696×737.png 696w, https://news.bitcoin.com/wp-content/uploads/2018 /11/clayton-profile-1068×1132.png 1068w, https://news.bitcoin.com/wp-content/uploads/2018/11/clayton-profile-396×420.png 396w, https://news.bitcoin.com /wp-content/uploads/2018/11/clayton-profile.png 1360w "sizes =" (max-width: 300px) 100vw, 300px "/>At the conference of Consensus Invest on Tuesday , SEC chairman Jay Clayton explained what he needed to see before the SEC could consider approving its first bitcoin fund
According to the Cnbc, Clayton said it " needed to see significant upgrades in the cryptocurrency markets before approving an ETF in bitcoin. " Specifically, the president of the SEC "wants to see better market surveillance and cryptocurrency custody before being" at ease "" with a bitcoin ETF, "the media added.
Better Market Surveillance
The first problem Clayton noted was the lack of market surveillance during trade Cryptographic surveillance involves the use of systems that "monitor, prevent and investigate abusive and manipulative activities in the markets," the publication describes.
The Chairman explained that stock exchanges such as the New York Stock Exchange and the Nasdaq already had this control. tools in place. However, "this type of collateral does not currently exist on all stock exchanges where digital currencies are negotiating," he said, stating:
What investors are waiting for, 39 is that the trading of the underlying commodity to which the ETF makes sense the risk of manipulation … It is a problem that needs to be resolved before I get comfortable.
However, not all cryptographic exchanges are lacking in market surveillance. In April, Nasdaq announced that Gemini crypto-exchange will "leverage Nasdaq's Smarts market surveillance technology to monitor its market." Nasdaq says its technology "is considered the most widely deployed surveillance system in the world."
Rejection by the SEC of the rule change proposed by Bats BZX for the registration and exchange of ETF coins. In particular, the commission cited the absence of "shared supervisory contracts with major trading markets" of Bitts BZX or its derivatives.
Tuesday, Bitstamp, the largest encryption market in Europe, Bitstoin, announced the establishment of a monitoring platform provided by the market surveillance provider Irisium
Inadequate guard [19659017ClaytonalsoworriesaboutthesecurityofcryptographicbadetstoragenotingthatinvestorsmaybeexposedtotheriskofstealingtheunderlyingbadetsoftheETFsCompaniessuchasFidelityInvestmentsCoinbaseGeminiBitgoItbitJapanesebankNomuraGoldmanSachsNorthernTrustandSouthKoreanbankShinhanhavealsoexploredseveralcustodysolutions
Nevertheless, the newspaper quoted Clayton. Custody solutions "still need to be improved and strengthened". The President explained:
We have witnessed theft of digital badets that make you scratch your head … We make sure that the badets underlying this ETF have good custody and that they & # 39; will not go away.
What do you think of the SEC President's position on Bitcoin ETFs? Let us know in the comments section below.
Images courtesy of Shutterstock and the SEC.
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