Former SEC Chair Jay Clayton Asserts Inevitability of US Approval for a Spot Bitcoin ETF

The former Chairman of the U.S. Securities and Exchange Commission (SEC) asserts that the approval of a spot market Bitcoin (BTC) exchange-traded fund (ETF) is an imminent development.

During a recent interview on CNBC Squawk Box, former SEC Chair Jay Clayton stated that the authorization of a spot market BTC ETF is practically certain, given that it is evident that the foremost cryptocurrency, by market capitalization, does not qualify as a security.

“It is evident that Bitcoin is not deemed a security. Furthermore, it is abundantly clear that both retail and institutional investors seek access to Bitcoin. Most significantly, reputable providers, who either serve as fiduciaries or are obligated to act in the best interests of their clients, are eager to offer this product to the retail sector. Consequently, I firmly believe that regulatory approval is inevitable. The ongoing disparity between a futures product and a cash product is unsustainable.”

The SEC recently faced a legal defeat against Grayscale concerning the rejection of the crypto firm’s application to establish a spot market BTC ETF. The presiding judge in the case ruled that the SEC must reassess its stance to ensure consistency.

Historically, the SEC has greenlit BTC futures ETFs while rejecting numerous proposals for spot market BTC ETFs, which would grant retail investors access to BTC through brokerage services, much like they access precious metals.

According to Clayton, the fact that major financial institutions are instituting surveillance systems to oversee spot market BTC ETFs should alleviate the SEC’s concerns regarding investor safety.

“I previously held the viewpoint that we were uncertain about the susceptibility of cash trading to manipulation, which raised questions about whether retail investors should have access to it. However, we now see substantial institutions implementing surveillance measures and asserting that such concerns are unfounded. We can place confidence in the effectiveness of the cash market to a satisfactory degree, and as a result, we consider it a legitimate product.”

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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