Jay Clayton Chief of SEC – Better Crypto Regulation Needed

Jay Clayton, the SEC’s chief, said better regulation around bitcoin markets is needed before they can be traded on major exchanges.

The statement was made at the Delivering Alpha conference hosted by the American television station CNBC. The SEC president said investors are “very wrong.” If you consider that Bitcoin and other cryptocurrencies are subject to the same pricing practices as the top stock market products like Nasdaq or New York Stock Exchange.

“In my opinion, we must reach a point where we are sure that trading is better regulated”,

pointed out Jay Clayton, the head of the SEC.

He argued that price reports do not show the detailed process of calculating cryptocurrency prices, as is done for other financial products listed on the stock exchanges. Clayton also argued that more investor protection measures are needed on major exchange platforms. Only then can the integration of cryptocurrencies into major financial markets be discussed.

SEC Chief’s message regarding cryptocurrencies

The message reiterates the comments made earlier this month regarding a possible Bitcoin exchange traded fund (ETF). At that time, the SEC president said that there was still “work to be done”, although “progress is being made”.

The financial regulator is nearing the deadlines for a final decision on Bitcoin ETFs from Wilshire Pheonix and Bitwise Asset Management.

A third Bitcoin ETF application, introduced by Cboe BZX Exchange VanEck / SolidX, was withdrawn earlier this week. It had a decision deadline on October 18, and approval seemed unlikely.