Former SEC head Jay Clayton recently told CNBC that it would be “hard to resist” approving a Bitcoin ETF. Furthermore, Clayton discussed the development of the digital asset market and the reasons why a favorable clearance would result from improved regulatory standing.
Numerous conventional financial institutions have recently filed Spot Bitcoin ETF documents. Asset management goliaths like BlackRock and Fidelity are among them; each of them submitted their proposals within the previous month. The sector is currently waiting for the SEC’s judgement on what would be their first approval of this kind.
Approval of Bitcoin ETF difficult to resist?
This year’s most unexpected event thus far has been the increase in Spot Bitcoin ETF proposals. Indeed, they have blatantly shown a shift in viewpoint from conventional financial voices. However, whether or not the US Securities and Exchange Commission (SEC) would allow the creation of these corporations now ultimately determines the interest from these entities.
But according to former SEC head Jay Clayton, approving a Bitcoin ETF would be “hard to resist.” He specifically emphasized the development of the sector and the difficulty in rejecting an ETF approval in a recent interview with CNBC.
“I find that pretty remarkable,” Clayton added, “that we have these institutions that know markets better than anyone and saying we’re going to put our reputation behind it.” The institutions contend that these disparities are no longer relevant and that the spot product is now less inefficient for investors.
On the other hand, Clayton also mentioned how meticulous the regulatory procedure is. He therefore does not anticipate receiving a response right now. He did, however, point out that approval would require legal protections, which would depend on the SEC’s continuous establishment of such protections.
In the world of digital assets, Clayton is most known for starting the 2020 lawsuit against Ripple. Additionally, the legal action is still pending and has grown into a major bone of disagreement between the regulator and the sector. Clayton has now changed his mind about the business, though. even accepting an advisory post with the cryptocurrency company Fireblocsk.