The Chairman of the US Securities and Exchange Commission (SEC) said that it is necessary to improve the regulation of bitcoin before cryptocurrency can be traded on large exchanges.
Speaking at a CNBC Delivering Alpha conference, SEC chairman Jay Clayton said investors were “very wrong” if they thought bitcoin and other cryptocurrencies were priced the same as products on leading exchanges such as Nasdaq or New York stock exchange.
“In my opinion, we need to get to that point – and I speak only for ourselves – when we can be sure that trade is better regulated,” Clayton said.
He also noted that price reports do not indicate transparency. Clayton claims that major exchanges work for other financial products. He added that investor protection on such exchanges is also needed on cryptocurrency markets before they can be added to large platforms.
Clayton’s statement follows his comments earlier this month regarding Bitcoin ETFs. Then he said that despite the fact that significant steps have been taken towards launching exchange traded funds on Bitcoin, “there is still a lot to do.”
Recall that for the financial regulator, the deadline for approving or rejecting applications for ETFs for bitcoin from Wilshire Phoenix and Bitwise Asset Management is approaching. An application to launch a traded exchange-traded fund for bitcoin by VanEck and SolidX was withdrawn this week.