SEC May Approve Bitcoin ETF Earlier Than Expected

SEC May Approve A Bitcoin ETF Earlier Than Expected

There’s a consensus in the crypto community that a bitcoin ETF is necessary to make the cryptocurrency a mainstream investment vehicle. This may soon become a reality according to a SEC commissioner Robert J. Jackson Jr.

Jackson was speaking in an interview with Congressional Quarterly. Even though the interview was not meant to go public before February 11, the SEC chief said that it is just a matter of time before an approval..

ETF Approval Certain

The information that scheduled for release  in a week was leaked to the press as seen in a tweet by Drew Hinkes who wrote,

“#SEC Commissioner Jackson in an interview to be published next weeks is optimistic that a “fund based on #bitcoin” will eventually be approved, expresses concern about the proposed ETFs submitted to date.”

Jackson spoke of the difficulty in getting approval for exchange traded funds from the SEC. He highlighted the fact that a nod from the regulator means that all Americans could trade on bitcoins despite attendant risks.

However, he hinted that ETF approval for Bitcoin is no longer an issue of if by when.

“Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard, and it should be. Once we put the stamp of the United States Securities and Exchange Commission on an investment; once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt”

he said.

Market Participants Coming Up With Ideas

SEC May Approve A Bitcoin ETF Earlier Than ExpectedHe addressed some specific cases pending before the US SEC such that applied for by the Winklevoss brothers that run Gemini stating that the focus of the regulator would be on approving a bitcoin ETF that makes investor protection a priority.

Jackson expressed optimism especially because there are various options available for the agency to look at saying that these stemmed from the fact that stakeholders are coming up with different ideas.

In the comment, he said,

“I’m happy to say market participants have begun to come in with ideas. Whether or not we’re going to find one that really protects investors I don’t know, but I do know that that case wasn’t especially close.”

He also said that an approval wouldn’t come overnight but will happen soon because he sees the possibility of an entity meeting the requirements set by the agency for approval.

SEC Makes Crypto A Priority

At the beginning of 2019, SEC made it plain it would make the crypto industry one of its top priorities this year. Its Office of Compliance Inspection and Examination (OCIE) wrote:

“OCIE will take steps to identify market participants offering, selling, trading, and managing these products or considering or actively seeking to offer these products and then assess the extent of their activities. For firms actively engaged in the digital asset market, OCIE will conduct examinations focused on, among other things, portfolio management of digital assets, trading, safety of client funds and assets, pricing of client portfolios, compliance, and internal controls.”

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Author: Jofor Humani

Peddling words has been a passion beneath the surface. I speak less than I write...naturally. Aside speaking and writing, I walk too...good for your heart they say. I sometimes do not feel like writing. Then I enjoy quiet times which I use to think and stay with family.

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