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SEC Commissioner Clears The Air On Bitcoin ETF Delays, Provi...
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SEC Commissioner Clears The Air On Bitcoin ETF Delays, Provides Specifics On Guidelines For Approval

The discourse on cryptocurrencies, including Bitcoin [BTC] and Ethereum [ETH], have been doing the rounds for quite some time now, with financial watchdogs including the Securities and Exchange Commission [SEC] showing keen interest. Recently, Kara Stein, the SEC Commissioner, gave her views on the FinTech industry as well as the Bitcoin Exchange-Traded Fund [ETF].

Speaking to Bloomberg, the Commissioner commented on how SEC is taking several steps to oversee developments in the industry, citing the establishment of the Strategic Hub for Innovation and Financial Technology. She even gave her two cents on the steps taken by the security body to analyze exchange and trade.

Stein spoke about how different companies are slowly wading into the world of cryptocurrencies and are being watched over by staff letters that are drafted by SEC.

According to Stein, the staff letter addresses issues such as the valuation of the cryptocurrency, available liquidity, and all the underlying factors that would make it a useful commodity. She stated:

“These factors are proposed by us in the same way that a car needs to have seatbelts and airbags before it can be fully operational. It is necessary for everyone’s safety.”

The SEC Commissioner also went on to say that one of the main duties of the organization was to decide whether commodities like Bitcoin can be considered as a security or not. The product is also categorized depending on the form of technology used, stated Stein.

The finance expert was candid enough to admit a few reasons that had acted as obstacles in the passing of the Bitcoin ETFs. She said:

“The nature of the commodity, the OC pricing sources, and access to individual investors are a few points that have caused a hiccup. For something like the Bitcoin ETF to come to fruition, it has to adhere to a few basic guidelines.”

She gave a brief on the guidelines by saying that an asset like Bitcoin has to show how it can get accurate valuations, ensure physical custody, and provide ample liquidity for investors to withdraw at any given time. Stein assured investors that if these regulations are met, then there will be a clear-cut decision on the implementation of Bitcoin ETFs.

coinmag

Bitcoin participant since 2014 - Online tech journalist

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