Alex Dovbnya
In a recent interview with CNBC, former SEC Chairman Jay Clayton said that as long as regulatory protections similar to those found in the futures market are in place, “it will be hard to resist approving Bitcoin ETFs.”
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In a recent interview with CNBC, former SEC Chairman Jay Clayton shared his perspective on the evolving regulatory landscape for bitcoin ETFs and highlighted the significant changes he has seen in market attitudes towards cryptocurrencies since his tenure. “This is an offshore retail business that I don’t think is remotely close to the core of our financial markets,” Clayton said of Bitcoin’s early days. He pointed out that he was initially skeptical about the Bitcoin market due to concerns about practices like wash trading and market manipulation.
However, Clayton acknowledged the impressive strides the industry has made, particularly in the area of institutional investing.
Firms with strong reputations in the market are now turning to bitcoin, a sign of growing confidence in the cryptocurrency sector’s regulatory protections and trading opportunities.
“The fact that we have these institutions that know the markets better than anyone and say we have a reputation behind them is quite remarkable,” Clayton said.
On the subject of bitcoin ETFs, Clayton said he thinks it would be “hard to resist” approving a bitcoin ETF when there were regulatory safeguards equivalent to those in the futures market. “What the institutions are arguing is that those distinctions have disappeared and the spot product now means less drag and is more efficient for investors,” he explained.
However, Clayton cautioned that these changes might not come quickly, citing the thoroughness of the regulatory process needed.
As then-Chairman of the US Securities and Exchange Commission (SEC), Clayton is best known for filing a lawsuit against Ripple Labs Inc., its co-founder Chris Larsen and CEO Brad Garlinghouse in December 2020. However, he has since warmed up to crypto by taking an advisory role at crypto company Fireblocks.
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