Jay Clayton stated that he had been skeptical about trading in the BTC market during his tenure as SEC Chairman (from 2017 to 2020). However, he acknowledged that the emergence of reputable institutions in the cryptocurrency industry is a notable development that had not been seen before.
The approval of a Bitcoin ETF would be a contentious issue for the SEC because previous registration applications have faced numerous rejections due to concerns over market manipulation and investor protection.
However, with the involvement of major financial players including Fidelity, Ark Invest, and BlackRock, the pressure on the SEC to approve such a product is increasing.
Clayton’s remarks are considered a significant development regarding the approval of Bitcoin ETFs.
Despite the remaining legal barriers, the openness demonstrated by the former SEC Chairman indicates that the cryptocurrency industry is moving closer towards gaining SEC approval.