United States Securities and Exchange Commission (SEC) Chairman Jay Clayton mentioned that the regulator must really feel comfy with cryptocurrency custody and guarantee no market manipulation can happen earlier than approving a crypto exchange-traded fund (ETF). Clayton made his remarks throughout an interview with CNBC on June 6.
When Clayton was requested whether or not an ETF based mostly on a bundle of cryptocurrencies could possibly be launched within the U.S., Clayton mentioned that the SEC is at present engaged on making that potential.
Still, he additionally famous that numerous points need to be resolved earlier than a cryptocurrency ETF might be accredited, beginning with custody:
“We’re engaging on this, but there are a couple of things about it that we need to feel comfortable with. The first is custody: custody is a long-standing requirement in our markets, and if you say you have something you really have it.”
Another main concern for the SEC is the alleged absence of sturdy preventative measures for market manipulation. Clayton mentioned:
“The other thing that is important is […] we have sophisticated rules and surveillance to ensure that people are not manipulating the stock market, those cryptocurrency markets by large do not have that; And we’re working hard to see if we can get there, but I’m not just going to flip a switch and say this is just like stocks and bonds, because it’s not.”
Clayton’s views are seemingly in stark distinction with these expressed earlier this week by SEC commissioner Hester Peirce, who has urged for a much less cautious method towards innovation within the ETF house on the regulator’s half.