Cameron and Tyler Winklevoss have been trying to get the U.S Securities and Exchange Commission (SEC) to approve their Bitcoin (BTC) ETF application but they are not close achieving it.
The Winklevoss twins have been on a mission to launch the first Bitcoin ETFs but the SEC has been standing in their way. The SEC rejected their first Bitcoin ETF application in March last year. It looks like the financial regulator maintains the same opinion about the cryptocurrency market as it did in 2017.
Securities Exchange Commission Chair Jay Clayton is reluctant to add digital currency #ETFs, including #Bitcoin ETFs, over fears of market manipulation, centralization, and custody security. @SEC_News https://t.co/xH7JM2FzlE
? CryptoSlate (@cryptoslate) November 28, 2018
The SEC is trying to avoid the risks associated with the crypto market
Jay Clayton, the current SEC chairman stated that the SEC is only interested in Approving ETFs backed by risk-free assets or at least those with low risk levels. Clayton made the statement during a Q&A session at a New York conference held on Tuesday. Clayton also pointed out that the high theft and disappearance risks associated with cryptocurrencies are a major reason behind the SEC?s decision to deny approval.
Clayton’s statement suggests that the Winklevoss twins’ Bitcoin ETF application will not get a green light anytime soon. He also talked about volatility and manipulation following an interview question about the two issues. He even compared the volatility to Microsoft and Amazon stock prices.
?Those stocks traded on exchanges where there were rules and surveillance designed to prevent manipulation,? stated Clayton.
The SEC Chairman also added that cryptocurrency exchanges do not have those vital safeguards that exist in the stock market. This means that the cryptocurrency market does not have enough regulatory measures in place.
Clayton made the statement after a massive crypto crash
It might take a while before the cryptocurrency market evolves to meet the SEC?s ETF standards. The Winklevoss twins will therefore not get their wish to launch the first Bitcoin ETF in the U.S anytime soon. Clayton?s statement also comes at a time when the cryptocurrency market has been experiencing more volatility. Cryptocurrency prices have tanked significantly over the past one week. The bearish trend saw Bitcoin’s price hit the $4,000s. The last time Bitcoin prices were that low was 2017 before the massive bull market that boosted its popularity.