SEC Chairman Jay Clayton — Necessary Changes are Needed Before a Crypto ETF.

Despite the consistent rejections of Exchange Traded Fund (ETF) applications put forward to date, hopes are still high amongst some, that the upcoming ETF decision may finally be the one that gets accepted. That was until SEC chairman Jay Clayton calmed those hopes once more when he spoke at Coindesk’s Consensus Invest Conference this week.

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During the fireside chat, Clayton expressed his concerns within the space that would need to be addressed before he would be ‘comfortable’ approving any cryptocurrency ETF.

“What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation,” … “It’s an issue that needs to be addressed before I would be comfortable.”

It would suggest then that no matter who puts forward an application a general cleaning up of the space and dismantling of unregulated exchanges worldwide is needed before any ETF proposal can be approved by the SEC.

“Those kinds of safeguards do not exist currently in all of the exchange venues where digital currencies trade,

“We’ve seen some thefts around digital assets that make you scratch your head,” … “We care that the assets underlying that ETF have good custody, and that they’re not going to disappear.”

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