Continuing on from an article we posted yesterday in regards to the SEC chairman, Jay Clayton saying that they are close to giving the go-ahead on a bitcoin ETF, it is now known as to why they have been delaying the decision for so long.
Speaking at an event on September 9th, several speakers took to the stage, one of which noted the SEC’s questions as regards to bitcoin custody, manipulation of price and security.
Highlighting that the SEC has been put of cryptocurrency due to bitcoin price manipulation, the chairman proposed the much-anticipated question on whether the cryptocurrency community is any closer to seeing an approved ETF. to this, Clayton said:
“There is a product that is the Cryptocurrency asset, then there’s the trading and holding of that asset. We’ve talked about whether some of these assets are securities and clearly we don’t see Bitcoin as a security. But when you put it into a product and make it a security, then we have to worry about whether or not it trades or is held appropriately”.
Clayton went oto say that efforts are being made towards improvement in regards to the concern of custody. Back in May, the commission and financial industry Regulatory Authority released a joint statement in addressing the factors which are considered when approving custody for digital assets.
“In the trading area, it troubles me that people look on these venues and think it has got the same level of protection that you’d have on an equity market in the US NASDAQ and MYSZ. Nothing could be further from the truth, we have lengthy rulebooks, all sorts of protections to make sure that prices are not manipulated in the equity markets, I don’t see those in the Crypto asset markets.”
It will be interesting to see how the ETF decisions play out. For more news on this and other crypto updates, keep it with CryptoDaily!