SEC Chairman Jay Clayton spoke about progress on a Bitcoin ETF in a CNBC interview.
The short answer is that progress is being made, but many of the same concerns are still be considered such as the potential of manipulation and the importance of custody.
“BOB PISANI: Let me ask you about bitcoin. I know I’ve asked you many times about this in the last couple of years, but it’s of intense interest to the viewers. Are we any further along on a bitcoin ETF? I know you did a memo – you and your staff – a year and a half ago, where you made it very clear you were concerned about custody and the security of custody, and you were very concerned about the fact that much of the pricing of bitcoin was done on foreign exchanges that had the potential to be easily manipulated. Now, your realm here is a bitcoin ETF. Are we any closer? Has – have the people involved in the bitcoin businesses in any way come closer to satisfying your concerns?
JAY CLAYTON: The short answer is yes. But there’s — there’s work left to be done. Those were not trivial questions. How do we know that we can custody and have a hold of these crypto assets? That’s a key question. And an even harder question, given that they trade on largely unregulated exchanges, is how can we be sure that those prices aren’t subject to significant manipulation. Now, progress is being made but people needed to answer those hard questions for us to be comfortable that this was the appropriate type of product.”