The SEC Still Believes In The Emergence Of A Cryptocurrency ETF

  • SEC is not against the legalization of cryptocurrency ETF

  • Crypto fund must comply with securities law

  • The SEC chairman declined to name approximately when a cryptocurrency ETF fund may appear on the market

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The American regulator continues to actively work on the legalization of the cryptocurrency fund traded on the exchange

The US Securities and Exchange Commission (SEC) is making efforts to create a regulatory framework for legalizing an exchange-traded cryptocurrency fund (ETF). SEC Chairman Jay Clayton said this at a conference on innovation and digital asset regulation.

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According to Clayton, the SEC is actively consulting with the Office of Foreign Exchange Control (OCC) and the Commodity Futures Trading Commission (CFTC) to find out who has regulatory jurisdiction over crypto products..

“If we are talking about ETF tokenization, then we should deal with the regulation, and we are ready for this”.

Tokenization The term tokenization has been around for quite some time. In the broadest sense, a “token” is a kind of unit designed to represent a certain value inside …

SEC Won’t Approve A Bitcoin ETF Any Time Soon: Van Eck CEO

More exchange-traded fund allows any cryptocurrency like bitcoin to function as a single security like a stock, which will open new doors to the cryptocurrency market for traditional investors.

Law supremacy

Clayton also stated that the reason the regulator so often denied ETFs to many crypto-focused companies was the unreasonable desire of many applicants to “drop some of the principles of accountability and transparency.”.

In particular, the head of the SEC drew attention to the cryptocurrencies that were born thanks to the unregistered initial coin offering (ICO).

“What we dislike is the assertion that the function [of an asset] is payments, and that is why we should ignore the securities law,” Clayton said..

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Despite the optimism, the head of the American regulator did not name the approximate time frame for the appearance of the first cryptocurrency ETF fund..

The SEC Still Believes In The Emergence Of A Cryptocurrency ETF

Wilshire Phoenix was the last company to try to get a crypto ETF approval from the SEC. The company planned to place bitcoins, short-term treasuries and US dollars in ETFs. However, the SEC denied Wilshire Phoenix an ETF launch, citing problems with fraud and manipulation in the cryptocurrency market..

However, the interest of the cryptocurrency market in ETFs, according to some, has completely dried up. According to the developer of the cryptocurrency Litecoin (LTC) Charlie Lee, the crypto ETF will not cause a new bullish trend due to the detrimental effects of the coronavirus pandemic and the printing press of central banks.

The SEC Still Believes In The Emergence Of A Cryptocurrency ETF

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