In a recent report, the former chairman of the United States Securities and Exchange Commission (SEC), Jay Clayton, has expressed his strong belief about the pending spot Bitcoin ETF application being inevitable for the commission to approve. He pointed out the decreased market manipulation and other risks associated with Bitcoin investment as one of the key factors for his positive stance on the topic.
The global crypto community is still holding its fingers crossed as the anticipation for the SEC’s verdict on spot Bitcoin ETF applications heightened. A lot of experts have given their predictions on the possible outcome of the issue, Jay Clayton, being one of the latest analysts, analyzed the situation using his experience as a one-time chairman of the SEC, heading the commission from 2017 to 2020.
According to the former SEC chair, the approval of the financial instrument is inevitable and predicted that the SEC would soon endorse all eligible firms that submitted their applications to start offering spot Bitcoin ETF for trading within the US.
Clayton Makes Strong Assumption
In addition, the US SEC had been in constant denial of spot Bitcoin ETF, rejecting numerous applications submitted by diverse firms willing to offer the financial instrument to their customers. In its defense, the commission had always cited market manipulation, fraud concerns, and other risks as reasons for constant denial. However, the ex-Chief of SEC’s recent comment on the topic hinted at a potential shift in sentiment within the commission. He points out that the approval is inevitable, and there was nothing left to decide on.
Furthermore, the report revealed that Clayton’s bold stance on the approval of the financial instrument was rooted in his discoveries about how the Bitcoin market had significantly grown and gradually suppressed the underlying events that plagued it in the last five years. For instance, he claimed that wash sales and laddering had significantly diminished in the market.
Additionally, Clayton applauded the SEC for making constant efforts to adapt to the revolving landscape of the digital assets market, as evident in its calm composure when reputable financial firms such as Fidelity and BlackRock disclosed their interest in spot Bitcoin ETF. He pointed out that their receptive gesture towards the disclosures suggested that the commission has a significant level of confidence in the integrity and transparency of the Bitcoin market
Bitcoin Market Has Significantly Improved
In addition, the former SEC chief highlighted that the Bitcoin market has improved its infrastructure and custody solutions, claiming that it initially lacked enough facilities to store and secure BTC assets, barring traditional financial market players from entering the market. He added that robust custody solutions that offer security and transparency to optimal investors now exist due to the Bitcoin market’s unceasing efforts. His reviews on the Bitcoin market tally with the recent evolution and maturation in the broader crypto market.
Furthermore, statistics showed that Bitcoin had grown significantly to be widely recognized as a valid asset class, attracting the interests of both institutional and retail investors. The rapidly growing acceptance has significantly reshaped the landscape of regulations across different jurisdictions, consequently inciting more interest in investment products related to crypto.
Crypto Community Awaits SEC’s Verdict
Even though Clayton’s prediction seemed significant, it is essential to note that it takes complex processes to arrive at a consensus for such an important case as it would determine the fate of spot Bitcoin ETF and also impact the broader crypto market significantly. Currently, the SEC is reportedly evaluating each applicant’s proposal, reviewing significant factors such as regulatory compliance, market integrity, and customer protection to fish out eligible applications.
Speaking of benefits, spot Bitcoin ETF offers a regulated and cozy trading platform that exposes traditional investors to Bitcoin without them necessarily holding the asset. It is generally more accessible and easier to trade, enhancing market liquidity.
The global crypto community continues to anticipate the verdict of the SEC on the financial instrument. Even though Jay Clayton’s prediction suggests a positive sentiment, the SEC, however, holds the final decision. And whatever the commission decides would definitely impact the broader crypto market.
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