SEC Chair Clayton: Would-Be Bitcoin ETFs Have ‘Work Still left to Be Done’

The market has taken techniques to handle the U.S. Securities and Trade Commission’s (SEC) considerations about approving a bitcoin exchange-traded fund (ETF), but there is nonetheless “work still left to be carried out,” mentioned the agency’s head.

Talking on CNBC Monday, SEC Chairman Jay Clayton mentioned “progress is becoming made” in the crypto place to allow for a bitcoin ETF to launch, while considerations linger.

In November the chairman mentioned considerations all-around value manipulation were a important holdup for the economic product’s environmentally friendly mild, along with queries these types of as how custody operates.

On Monday, Clayton reiterated these considerations, declaring:

“An even more challenging dilemma given that they trade on largely unregulated exchanges is how can we be certain that individuals charges are not issue to considerable manipulation? … Persons needed to answer these challenging queries for us to be at ease that this was the acceptable type of product.”

The SEC’s queries are “not trivial,” Clayton included.

Critical juncture

Clayton’s remarks occur just weeks before the SEC is expected to approve or reject a pair of bitcoin ETF proposals.

Bitwise Asset Administration, which filed one of the proposals with NYSE Arca, has revealed a selection of experiences above the past calendar year in an exertion to encourage the SEC that the market is mature adequate to aid these types of a product.

VanEck/SolidX submitted the other proposal with Cboe BZX. This proposal was filed in 2018 and was witnessed as a strong contender to develop into the initial bitcoin ETF authorized by the SEC. On the other hand, it was withdrawn through the prolonged governing administration shutdown of early 2019 and re-filed.

The SEC has postponed choices on both of those ETF proposals but faces a closing deadline of Oct. 13 for Bitwise and Oct. 18 for VanEck/SolidX.

Though waiting around for an ETF acceptance, VanEck has begun providing shares of its VanEck SolidX Bitcoin Have faith in to skilled institutional purchasers employing an exemption beneath the SEC’s regulations. Though the product, announced past 7 days, is not a retail providing (and hence not an ETF), the shares occur from the similar rely on on which VanEck hopes to make an ETF. 

Nikhilesh De contributed reporting.

Jay Clayton image through CoinDesk archives