The US Securities and Exchange Commission (SEC) has now entered a period of active study. It is busily looking at cryptocurrency-based exchange-traded funds or ETFs, and thus it may be that traders could find themselves reaping the benefits of such opportunities very soon.
The SEC Is Looking to Shed Its “Rigid” Image
The news of the study session was announced at a conference by Jay Clayton, the chairman of the SEC. This is something that should really be tugging at the heartstrings of most investors everywhere, especially the US, considering how long it’s been that they’ve waited for a crypto-based ETF. Several companies have tried to get one approved, such as Bitwise, and few have gotten far.
The SEC has clearly shown in the past that it doesn’t quite understand cryptocurrencies the way it should. Otherwise, we would have seen a bitcoin ETF come about already, though to be fair, digital assets are still considerably newer than fiat currencies or even copper, which was one of the more recently approved ETFs permitted by the SEC.
For the most part, it seems that the SEC views crypto in a negative light. Something that is extremely vulnerable to price swings and that can put people through investment hell. In addition, crypto has a long history of attracting criminal behavior, which isn’t going to sit well with a government body.
Still, this doesn’t take away from all the good that crypto can do, and it’s about time the SEC steps up to further look at this growing investment field. The SEC has joined hands with several other financial firms including the Office of the Comptroller of the Currency and the Commodity Futures Trading Commission (CFTC) to discuss how each crypto product should be monitored and regulated.
Clayton admits that the SEC has been rather “rigid” when it comes to cryptocurrency in the past, but he’s looking to help the agency shed this present image and become more open-minded when it comes to new investing opportunities. Recently, Clayton announced that he approved the first securities registration for an enterprise that was looking to sell digital tokens through a public offering last August.
Do Things Right and We’ll Work with You
Our door is wide open. If you want to tokenize the ETF product in a way that adds efficiency, we want to meet with you and we want to facilitate that. Of course, you must register it and do what you would do with any other ETF.
The statement makes it clear that the SEC is not necessarily anti-crypto, though several companies have sought to initiate events like public token offerings without undergoing the appropriate registration protocols, which have often led to heavy penalties and the banning of certain companies and figures from the crypto space. The SEC simply wants organizations to follow the rules, and those that don’t will likely face serious consequences.