SEC President - The main obstacle is the volatility of BTC transactions

Creating a Bitcoin exchange traded fund (ETF) still requires additional efforts, said Jay Clayton, SEC president. In an interview with CNBC, he said that progress has been made, but there are concerns.

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1 SEC skepticism

1.1 Related posts:

SEC Chair Jay Clayton on bitcoin ETFs, IPOs and algorithmic trading from CNBC.

The main obstacle is the well-known volatility of BTC transactions and the potential for price manipulation. Over the past year, the BTC has appreciated rapidly, often adding thousands of dollars in a day or dropping as fast, which suggests intentional efforts to manipulate the price.

“An even more difficult question, given that the trading takes place on largely unregulated exchanges, how can we be sure that these prices are not subject to significant manipulation? … People have to answer these hard questions for us to be comfortable with this type of product ”,

said SEC President Clayton.

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His statement was made just days after Van Eck launched a limited investment vehicle similar to an ETF for large clients.

SEC skepticism

The US regulator has generally been skeptical of an ETF based on very new industries. For example, it has actively banned terms such as “blockchain” and “5G” from fund names. An ETF can be of any size and provide exposure to almost any asset for the general public, but using such widely circulated terms could create risks for FOMO-based personal finance.

The SEC is currently considering several proposals for Bitcoin ETFs, whose deadline for a decision is October.