According to the U.S. Securities and exchange Commission better regulation is required for Bitcoin to be traded on major global exchanges.
The SEC Chairman Jay Clayton spoke of his concerns over cryptocurrencies during CNBC’s Delivering Alpha conference, stating current investors are ‘sorely mistaken’ if they think cryptocurrencies, including Bitcoin undergo similar price discovery practices as products currently on top exchanges such as NASDAQ and the NYSE.
Emphasising his regulatory concerns, Clayton noted: ‘We have to get to a place, in my view — just speaking for myself — we have to get to a place that we can be confident that trading is better regulated.’
Clayton also remarked that investor protection is required within the crypto markets like the major exchanges today. It is his belief that this is a staunch requirement before crypto markets can be added.
The sentiment of members within the U.S. SEC is mixed with Clayton taking a pragmatic but cautious approach to a notably volatile crypto market. Earlier this month Clayton remarked that there is still ‘work left to be done’ in relation to a potential Bitcoin exchange traded fund (ETF) but did elaborate that progress is being made.
The ETF saga has been long standing with several rejections and delayed decisions from the financial regulator. The next ETF decision deadline is approaching in relation to applications from Wilshire Phoenix and Bitwise Asset Management. Meanwhile alternative ETFs from the Cboe BZX Exchange were withdrawn earlier this month as approval seemed unlikely as their approval date loomed closer.