Chairman of the U.S. Securities and Exchange Commission (SEC), Jay Clayton, said that he didn’t see the possibility of approving a bitcoin ETF until the problem of market manipulations was resolved.
In this case, Clayton explained that he doesn’t know exactly how this problem will be solved, but this issue should be closed. At the same time, the prices of crypto assets should not be free from volatility, but free from manipulation. However, the official stressed that he spoke on his own behalf, and not on behalf of the department he headed.
Jay Clayton also spoke about the position of the regulator in relation to the initial coin offering (ICO). He stressed that any ICO distributing tokens among U.S. citizens should strictly follow the SEC rules. The official explained that bitcoin is not a valuable paper. However, many ICOs fall into this category. According to Clayton, there are two ways in which ICOs can avoid SEC regulations by analogy with securities.
It is noteworthy that a few days earlier, SEC commissioner Hester M. Pierce announced the inevitability of the approval of bitcoin ETF. According to her, a positive decision is possible in the near future. The official assures that inside the SEC there is an understanding that a new type of assets has appeared in the world. It should be clarified that Pierce is known for the fact that in July she publicly opposed the decision of the SEC to reject the launch of bitcoin ETH, initiated by the Winklevoss brothers.
The supporter of innovations in the sphere of exchange trade is convinced that she was able to convey her own position to the rest of the commissioners. In one of her recent statements, the SEC commissioner reiterated the need to mitigate the regulator's policy toward financial innovation and stressed that the launch of crypto funds could still take place. In the event of a new failure, Hester Pierce expects that the decision on bitcoin ETF will unambiguously receive the majority of votes after the planned change of SEC composition.
By the end of the year, powers of Kara Stein, an ardent opponent of cryptocurrencies, expire. The commissioner will be replaced by Republican Elad Roisman, whose program speech contained the thesis of the need to change the policy of regulating the market in favor of innovation.
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