US SEC chairman Clayton still worried over possible Bitcoin ETF manipulation

(chepicap) -- United States SEC Chairman Jay Clayton spoke about crypto in an interview with FOX Business, where he said that he still has concerns about investor protection when it comes to approving a Bitcoin ETF.

In the interview, the SEC chairman reiterated his stance of being neutral toward digital currencies in general, emphasizing that he is not against the asset in any way.

However, he did point out that he is still concerned over the potential manipulation associated with the space, and wants to guarantee investor protection.

'What I’m concerned about at the moment is if it can be reasonably demonstrated that the underlying trading is generally not manipulated, it’s happening on reliable venues with good rules and that custody is something we can feel comfortable about.'

It is obvious that Clayton’s ongoing apprehensions cast serious doubt over the possibility that the SEC will approve the Bitcoin exchange-traded fund any time soon.

The SEC has been accused of having a negative impact on the cryptocurrency industry. Mainly Republican lawmakers pointed fingers at the SEC, claiming that the massive crackdown on ICOs was detrimental to innovation.

In February Chepicap reported that Securities and Exchange Commissioner Hester Pierce, AKA Crypto Mom had further downplayed the likelihood of a Bitcoin ETF happening in 2019, citing the arcane rules at the SEC as the reason for the increasing delay.

'We have applications. … those are subject to a very specific time frame where we have to act within a certain amount of time, and so that’s what it’s going to depend on', Peirce said at an event at the Bipartisan Policy Center.

'Those are very arcane rules as to whether it happens or not, so I can’t speculate on the timing.'

Despite the arcane rules and concerns over BTC ETF manipulation, the Office of Compliance Inspections and Examinations stated that cryptocurrencies will be one of the top priorities of the U.S. Securities and Exchange Commission in 2019.


More Articles