SEC Chairman: Crypto Market is Easy to Manipulate, No ETFs
The chairman of the US financial regulator believes that crypto exchanges are opaque, and the market lacks protection from manipulations. Until these problems are resolved, the SEC won’t authorize BTC Exchange-Traded Funds (ETF).
According to CNBC, SEC director Jay Clayton believes one of the most important conditions for ETFs is the absence of market manipulation risks. If the BTC ETFs appear now, such tools will be very easy to manipulate and protective mechanism against such actions in the market at the moment does not exist.
Another problem is the lack of secure custodians for storing BTC. According to Jay Clayton, the digital asset is constantly being stolen. For the SEC, it is important the assets that are behind the Exchange-Traded Funds have reliable custodian services, which “won’t disappear”.
The SEC Chairperson believes that Bitcoin ETFs may appear on the market in the future, but now there will be no such funds.