Top U.S SEC Official Says Bitcoin ETF Will Soon Happen

Wilfred Michael 

Wilfred Michael

Reporter

08 February 2019,
12:56
Top U.S SEC Official Says Bitcoin ETF Will Soon Happen

After several rejected applications, there is hope on getting the approval of the U.S SEC for a Bitcoin Exchange Traded Fund (ETF) that will be serving its citizens.

The renewed hope is embedded in the leaked comments of SEC Commissioner Robert J Jackson Jr. who was speaking in an interview with Congressional Quarterly.

Although the news item was not supposed to get to the public until February 11, it was spilled on Twitter by a crypto enthusiast, Drew Hinkes who works with crypto startup Athena Blockchain.

Speaking in the report, Jackson's explained that it should be a heck of a job the get the U.S SEC or any other deep capital market to approve any offer that will be open to everyday investors.

According to him, the reason is that ‘once the stamp of the United States Securities and Exchange Commission is on an investment made available to everyday mom and pop investors, there is a risk that Americans can get hurt.’

So far, he asserted that the Bitcoin ETF applications submitted has not included enough investor protection strategies to convince to SEC to give a green light.

Especially in the case of the Winklevoss Bitcoin ETF application last year, Jackson said, it was not a tough call for the SEC since “the risk of manipulation and people getting hurt were enormous.”

Bitcoin ETF Green Light Now More Likely

Moving forward, Jackson suggested that newer applications submitted with the SEC are now addressing the challenges outlined earlier by the regulators and stand a better chance of getting approved.

“I’m happy [that] market participants have begun to come in with ideas. Whether or not we’re going to find one that really protects investors I don’t know.” Jackson said before adding,

“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”

The U.S SEC currently has two Bitcoin ETF proposals lining up on its desk — the Bitwise/NYSE Arca application submitted in early January and another resubmitted in late January by VanEck/SolidX/CBOE.

Although Jackson did not say precisely whether one of the current proposals will get a green light, his comments give hope that approval will happen sooner rather than later.

 

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