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US Securities and Exchange Commission President Jay Clayton believes the lack of collateral for investors could hinder the approval of a Bitcoin ETF.
The same old song
Speaking at New York's Consensus: Invest 2018, SEC Chairman Jay Clayton outlined the risks associated with the Bitcoin trade and the alleged lack of investor protection.
What investors are waiting for is that the trading of this commodity underlying the ETF is a logical negotiation, free from risk or significant risk of manipulation. […] These guarantees do not exist in many markets where digital currencies are active.
The head of the SEC also recalled the lack of reliable custody solution and the presence of questionable thefts of cryptocurrency. He said:
We have seen theft of digital assets that make you scratch your head. […] We ensure that the assets underlying this ETF are well-maintained and do not disappear.
It is precisely for these reasons that Commissioner Hester Peirce dissented when the SEC rejected the Bitcoin ETF application of the Winklevoss twins. At the time, she described:
It prevents investors from accessing Bitcoin via a publicly traded avenue offering predictability, transparency and ease of entry and exit.
It should also be noted that since then, NASDAQ has stated that it can lead the fight against market manipulation and that there already exist trading platforms that are already adopting its market surveillance technology.
They want to put crypto in a box
Commenting During Clayton's appearance at Consensus Invest, lawyers Stephen Palley and Lewis Cohen, along with Wall Street veteran Caitlin Long, reflected on the issues of custody, regulation and marketplace law. general.
According to Lewis Cohen, one of the main problems is that the rising tension between the traditional financial system and the crypto-currencies lies in the fact that the former wants to place the latter in a "nice box" that they can understand.
The tension between the traditional financial system means that the crypto falls into a pretty box that they all understand and that is used well with all their rules, which is not the case. […] this wild animal is not really well and we have to face that.
The panel also discussed the "conservation rule" in which traditional asset managers must use third-party custodial services for assets under management and whether it is unclear whether this will apply to the crypto market -change.
To that end, Cohen came to an apparently harmonious conclusion, in line with Commissioner Peirce's previous findings:
I think the president wants us to respect the law, but we still do not know what the law is.
Will the Bitcoin ETF be approved? Share your opinion in the comments below!
Images courtesy of Shutterstock, wikipedia.org
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