Home Crypto The ETF Approval Process Can Improve Transparency in Trading Platforms- Former CFTC...

The ETF Approval Process Can Improve Transparency in Trading Platforms- Former CFTC Chair

The plausibility that the United States Congress will increase cryptocurrency rules on all grounds isn’t probably, as famous by Timothy Massad, the previous CFTC Chairman from 2014 to 2017.

Expressing his ideas on the polarising delay in approving a Bitcoin Exchange Traded Fund (ETF) product by the Securities and Exchange Commission (SEC), Massad said somewhat than watch for a broad regulation from lawmakers. The SEC can improve transparency and integrity in the trade by approving an ETF conditionally.

Canada, Switzerland, Brazil, and Germany, amongst different nations, have killed their fears by approving a Bitcoin ETF product. However, with about ten purposes submitted to the US SEC for approval, the hopes of getting at the very least one approval proceed to look bleak. The demand for Bitcoin and cryptocurrencies, in normal, has peaked in the previous yr, with institutional buyers searching for methods to realize publicity to those rising asset courses. One of the conservative and authorized methods is thru the long-awaited ETF approval.

Amongst the challenges cited by Massad embody the shortage of regulation of cryptocurrency exchanges, the foremost sources the place Bitcoin costs for the ETFs shall be obtained.

“The downside is that these crypto exchanges are unregulated, and former SEC Chairman Jay Clayton was apparently unwilling to maneuver ahead on any ETF utility due to well-founded issues concerning the danger of fraud and manipulation in the underlying money market. The SEC doesn’t have the authority to control these exchanges, as a result of it may solely regulate exchanges that commerce securities, and Bitcoin and the opposite broadly traded tokens usually are not securities,” he stated

In proposing a means ahead, Massad stated the SEC may approve one of many many purposes submitted “on the situation that the ETF value relies on an index of exchanges assembly sure prescribed requirements, much like these for securities and derivatives exchanges.” This situation he believes will assist forestall the potential for manipulation that’s rampant amongst buying and selling platforms in normal.

Image supply: Shutterstock

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