Last updated on May 18th, 2024 at 12:57 pm
In a recent interview, ex-SEC chair, Jay Clayton pointed out that the approval of spot Bitcoin ETF is unavoidable. Clayton made this known in an interview on September 1 with CNBC Squawk Box.
According to him, the approval of a spot Bitcoin ETF is “inevitable,” adding that he was unsurprised that the watchdog had postponed its decision on several pending Bitcoin ETFs.
Clayton said;
“An approval is inevitable,” adding that “The dichotomy between a futures product and cash product can’t go on forever.”
Also, Clayton stressed that the backing of spot Bitcoin investment vehicles by large financial institutions marked a change in the way that regular investors might gain exposure to cryptocurrency. Recall that the Securities and Exchange Commission on August 31, chose a longer period for reviewing spot BTC ETF applications from firms including BlackRock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity.
In addition, Clayton explained the challenging job of the SEC. He mentioned that the regulators handled assets that were clearly breaking securities law when cryptocurrencies first came into the limelight. However, the Commission now has to deal with a wider range of crypto offerings including the ones that have “clearly shown promise.”
Related Reading: Spotlight on Bitcoin: Legal Moves and Regulatory Waves in the Industry
Clayton also asserted that the top cryptocurrency Bitcoin is not a security adding that it is something individual and institutional investors want access to.
“It is clear that Bitcoin is not a security. It is clear that Bitcoin is something retail investors want access to, that institutional investors want access to, and importantly, some of our most trusted providers who are fiduciaries or have duties of best interest, want to provide this product to the retail public. So I think approval is inevitable.”
SEC’s loss to Grayscale
The Securities and Exchange Commission lost a legal battle against digital currency asset management company – Grayscale when the Judge ruled that the Commission should reconsider its rejection of Grayscale’s application to create a spot market Bitcoin exchange-traded fund (ETF).
The Judge ordered the SEC to reconsider its position to remain consistent with its previous decisions. The SEC has approved futures Bitcoin (BTC) ETFs in the past but has rejected several bids to create spot market BTC ETFs.
Ultimately, the SEC has another month and a half (45 days) to make a decision to either approve, reject, or delay spot BTC ETF applications from seven top firms.
