Former SEC Chairman Jay Clayton suggested during a July 10 CNBC interview that regulators may soon feel compelled to approve a spot Bitcoin ETF.
Clayton explained that the U.S. Securities and Exchange Commission (SEC) has previously opted to reject spot Bitcoin ETFs and approve futures Bitcoin ETFs based on the latter’s oversight sharing agreements and protections.
He suggested that this situation has changed, stating:
“I think what the institutions are claiming is that those differences have disappeared, and the spot product is actually less lingering now [and] more efficient for the investor… If they are right… it would be hard to resist Bitcoin ETF approval.”
He did not predict when the SEC would approve a spot Bitcoin ETF, but noted that the regulatory process has taken some time.
Clayton’s comments are critical in light of the recent resurgence of ETF applicants. BlackRock, the world’s largest asset manager, submitted its spot Bitcoin ETF proposal on June 15. The filing was followed by applications from several other asset managers, including Bitwise, WisdomTree, Invesco, Valkyrie, VanEck and Fidelity.
The SEC has not yet approved any of those applications, and many of those applications were resubmitted in late June with changes amid reports of potential rejection.
Clayton comments on Bitcoin
During his appearance on CNBC today, Clayton also expressed surprise at the growth of Bitcoin (BTC) in recent years.
He said Bitcoin looked like the stock market in 2015, but was in fact “nothing like it”. He noted that the status of the asset has changed as companies of considerable reputation have decided that markets, custody and protection surrounding Bitcoin are enough. Those companies are now willing to be associated with the digital asset, he said.
Clayton called this transition “quite remarkable” and an “incredible development”. Moreover, he said that he did not expect this development when he served as chairman of the SEC between 2017 and the end of 2020. Clayton said he was skeptical of institutional Bitcoin investment based on studies showing that 90% of trading is wax trading and was based on apparent market manipulation and “dumping” by investors.
Clayton previously commented on other crypto developments at a June 8 Bloomberg event. There, he said crypto regulation requires nuance and praised what he called “real” stablecoins with full asset backing.
Bitcoin ETF approval post could be ‘hard to resist,’ says ex-SEC chairman Jay Clayton first appeared on CryptoSlate.
