The U.S. Security and Exchange Commission (SEC) is not a big believer in Bitcoin. And it proves it again and again.
Speaking at a conference, SEC chairman, Jay Clayton, raised an array of interconnected issues, including Bitcoin. He brought up the topics of regulatory discrepancies between the private and public markets, saying “More growth capital was raised in our private markets than in our public markets.”
And of course went on to criticize cryptocurrencies. In his view, investors are completely wrong about the whole thing in the first place. Bitcoin and other types of cryptocurrencies do not receive the same price discovery practices as other products on top exchanges like the Nasdaq or New York Stock Exchange. So what’s to be done? Bitcoin needs better regulation before it can make a foray into major exchanges.
Putting a song on repeat
Clayton’s latest utterance is nothing new. In fact, it feels like a deja vu–and there’s a clear taste of bafflement to it as well. After all, isn’t the SEC the one who should be regulating it the whole thing to begin with? Regulate it then! And while at it, it would also be beneficial to explain its approach to various matters, not just keep silent most of the time.
To that end, the story of VanEck/SolidX ETF application is a fantastic example of the SEC’s rather strange and quiet behavior. They have applied and re-applied for the ETF. They have held talks with the SEC and the latter postponed its decision on multiple occasions. And most recently it simply withdrew the application because the SEC once again did not explain what exactly it needs.
As a result, the community — and VanEck particularly — feels aggravated. And for all the right reasons: no one really understands what’s going on inside the SEC’s head as such. It rarely explains what has to be done or how it will proceed. Instead, every once in a while it emerges with utterances in the vein of “Bitcoin is not ready.”
This approach is not helpful at all. The SEC is right: many problems mar the crypto-verse. And yes, there are a lot of security issues involved. It is also encouraging that the SEC admits that certain progress has been made, however, it would be much easier if it itself helped create a roadmap that would significantly speed up the process.
Perhaps, then it will finally be content with Bitcoin and all the other cryptocurrencies as well.