SEC Chairman Jay Clayton announced that he is open to the possibility of opening a cryptocurrency-based exchange-traded fund (ETF) to explore the idea of tokenized stocks.
What we inspect with the "El Bailador" road simulator: conference virtual made with the Digital Chamber of CommerceThe president of the Securities and Exchange Commission (SEC) US Jay Clayton, stated that he is open to the possibility of trying an exchange-traded investment fund (ETF) based on cryptocurrencies, . Clayton's statements are a light of optimism and hope for the crypto community, despite the regulator rejecting a long list of applications for the creation of an ETF of Bitcoin for some years now.
“We are willing to try that; our door is wide open. If you want to show how to tokenize the ETF product in a way that adds efficiency, we want to meet with you, we want to facilitate that.”
Clayton's statements are very progressive, positive and encouraging for the ecosystem; In addition, the president of the SEC, known as one of the biggest critics of Bitcoin ETF products, also recognized that the entity started off on the wrong foot with this innovation. Possible tokenized actions include a large number of financial products related to decentralized finance (DeFi), as well as projects stablecoins decentralized and non-custodial lending.
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A new offer
For the United States regulator to approve the creation of an ETF product for Bitcoin, it is necessary for the crypto community to design and develop a truly solid offering. In the past, a long list of proposals seeking approval for the creation of an ETF has already been presented. Requests that were of course rejected by the entity. Now, with the new position that Clayton seems to be adopting, the doors are opening to new possibilities for the agency to approve this product; Of course, if the crypto community in general presents an efficient method for investments in cryptocurrency to be made reliably.
On the other hand, a few days ago Hester Peirce, commissioner of the SEC in the United States, made strong criticisms of how the entity resists the creation of an ETF, thus disapproving of these exchange-traded products. The commissioner assured that she has expressed on several occasions her disagreement with the position of her colleagues and the SEC on this issue. Peirce considers that the Bitcoin market has matured enough to implement this type of products, in addition to pointing out that this market encompasses great potential to develop new innovations.
Overall, a Bitcoin ETF is one of the most anticipated tools within the cryptocurrency markets. It is an investment instrument that combines traditional finance with cryptocurrencies, in this case Bitcoin, to allow trading and investment in this crypto asset to be carried out in an easier, simpler and more accessible way. With ETFs, it must be taken into account that although they include great benefits, they also involve great risks. The creation of this product could drive mass adoption of Bitcoin and other digital assets, or could negatively affect their value if many speculators agree to control their price. The latter is one of the biggest fears of the SEC, which has taken refuge in the volatility of the cryptocurrency and the possible manipulation of its price to reject previous proposals.
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Abra's case
The SEC's most recent case against ETF products took place in July of this year, when the entity fined the cryptocurrency company Open, alleging that it carried out exchange transactions based on unregistered securities. According to the regulator, Abra “offered and sold security-based exchanges to retail investors without registration, and did not clear these exchanges on a registered national exchange.” Faced with the SEC's accusations, Abra had to face a fine of $300.000 USD and desist from providing its services.
“Using the app, individuals were able to enter into contracts that provide synthetic exposure to the price movements of stocks and shares of exchange-traded funds (ETFs) traded in the US.”
SEC investigations noted that Abra violated provisions of the country's Federal Securities Act, with respect to issuing unregistered offerings and conducting securities-based exchange sales, which require certain exchange transactions to occur within an exchange. registered national. As we can see, the position of the SEC has not favored the development and creation of an ETF for Bitcoin, now it remains to be seen what the position that Clayton and the SEC will really adopt regarding the creation of this product that is so anticipated in the crypto community .
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