The United States Securities and Exchange Commission has been talked about a lot over the past year, especially when it comes to the Bitcoin ETF. Some commissioners have actually said some positive things about Bitcoin with others saying that that the approval of the Bitcoin ETF isn’t a matter of ‘if’ but ‘when’. That being said there hasn’t been an official statement from the SEC in regards Bitcoin ETFs.
The lack of certainty on Bitcoin ETFs is problematic and given that ETFs are an excellent way for both average and institutional investors to access the ecosystem and form a relatively safe position.
The stated position of the SEC is that the cryptocurrency market is still subject to heavy volatility although the market has been relatively stable so far this year.
For the SEC though, consumer protection is the key priority when it comes to regulation. This is a good position, but the SEC also stands to lose a lot if they postpone their final decision on an ETF approval.
Jay Clayton is the SEC Chairman and has said that manipulation and security are things that need to be looked at.
“What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation. It’s an issue that needs to be addressed before I would be comfortable…We care that the assets underlying that ETF have good custody, and that they’re not going to disappear.”
Many people see the United States as a country that is lagging behind when it comes to emerging industries like blockchain and artificial intelligence. Although that being said, there seems to be a lot of Bitcoin ATMs cropping up in the US. In fact, there are more than 4,000 BATMs in the nation at the time of writing so one could say that they are actually ahead of the game.
China has embraced these technologies and for the most part, has encouraged innovation with the aim of digiting their economies and birthing new employment opportunities.
There is genuine potential in the asset class of cryptocurrencies and increasingly authorities across the globe are taking to it. By adapting existing rules to accommodate digital assets, these nations will allow of a quick burgeoning industry to flourish which draws more investment and innovation into their respective economies.