Former SEC chair, Jay Clayton, recently shared his thoughts on the potential approval of a Bitcoin Exchange-Traded Fund (ETF) during an interview with CNBC. He acknowledged that the SEC faces a difficult challenge in regulating cryptocurrencies, especially considering the evolution of the crypto market over the years. Clayton highlighted the SEC’s initial struggle with non-compliant offerings and its current task of overseeing broader crypto offerings that show promise.
Bitcoin: Not a Security
While Clayton refused to disclose whether he would have approved a spot Bitcoin ETF if he were still in charge, he did emphasize that Bitcoin is not a security. This statement suggests that he views the cryptocurrency as a commodity instead. By asserting Bitcoin’s non-security classification, Clayton potentially opened doors for the approval of a spot Bitcoin ETF.
Clayton expressed optimism regarding the future approval of Bitcoin ETFs, citing the SEC’s previous approval of Bitcoin futures ETFs. According to Clayton, the dichotomy between futures products and cash products, such as a spot Bitcoin ETF, cannot persist indefinitely. He implied that the approval of a spot Bitcoin ETF is inevitable, given the existing participation of large institutions and the availability of surveillance-sharing mechanisms.
Interestingly, Clayton’s remarks came just after the SEC postponed decisions on several proposed Bitcoin ETFs. These decisions, along with associated rule changes, are now scheduled to be made starting in mid-October. The review process will culminate in either the acceptance or rejection of the proposals. Thus, the postponement has likely fueled anticipation and speculation within the crypto community.
A Reaction to Anthony Pompliano
Clayton’s interview also responded to comments made by Anthony Pompliano, another individual interviewed by CNBC. Pompliano confidently claimed that a spot Bitcoin ETF “will be approved” and will result in substantial inflows of billions of dollars. While Clayton did not explicitly agree with Pompliano’s statement, his overall optimism about the future of Bitcoin ETFs suggests that he sees potential for their approval.
Jay Clayton’s perspective on the approval of a Bitcoin ETF offers some insights into the challenges faced by U.S. securities regulators. His acknowledgement of the potential for a spot Bitcoin ETF and his optimistic outlook on future approval provide hope for crypto enthusiasts and investors. However, the SEC’s upcoming decisions on proposed Bitcoin ETFs will ultimately determine the fate of these investment products. The crypto community eagerly awaits the outcomes and continues to speculate on the potential impact of a Bitcoin ETF on the market.