The Challenge of Regulating Crypto
In a recent interview, former SEC Chair Jay Clayton acknowledged the difficulties of regulating the cryptocurrency industry. He highlighted that when crypto first entered retail markets, many non-compliant products were developed, leading to SEC intervention. Now, the challenge lies in distinguishing between securities and non-securities offerings, including stablecoins.
Bitcoin ETF Approval Inevitable
When asked about his stance on a Bitcoin ETF, Clayton didn’t provide a direct answer but emphasized that Bitcoin is not a security and attracts interest from both retail and institutional investors. He believes that trusted providers want to offer Bitcoin products to the public, making approval of a Bitcoin ETF inevitable. Clayton also mentioned that large institutions now view cash trading in Bitcoin as less manipulable, potentially influencing the SEC’s assessment of ETF applications.
Bitcoin Price Surges Above $30K
On October 20, the price of Bitcoin surged above $30,000 on Bitstamp exchange due to growing optimism surrounding the approval of a Bitcoin spot ETF by the SEC in the coming months. This milestone was reached just 50 days after Clayton’s statement about the inevitability of a Bitcoin spot ETF in the U.S. In the past 24 hours, 7 days, and year-to-date periods, Bitcoin has seen gains of 5.16%, 11.39%, and 80.10% respectively.
Expectation for Approval within Months
J.P. Morgan’s research report released on October 18 predicts that the SEC will approve a Bitcoin spot ETF “within months.” This further fuels speculation and optimism within the crypto community about the future of Bitcoin ETFs.
Hot Take: Increasing Optimism for Bitcoin Spot ETF Approval
The recent surge in the price of Bitcoin above $30,000 is a clear indication of the increasing optimism surrounding the approval of a Bitcoin spot ETF by the SEC. Former SEC Chair Jay Clayton’s belief that approval is inevitable, coupled with institutional recognition of Bitcoin’s stability, provides further support for this sentiment. As J.P. Morgan predicts approval within months, the anticipation for a Bitcoin ETF continues to grow, potentially opening up new opportunities for investors and further legitimizing the cryptocurrency industry.
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