The Securities Exchange Commission (SEC), according to Jan van Eck, CEO of global investment management firm VanEcK, is holding the spot Bitcoin exchange-traded fund (ETF) hostage due to its failure to approve the product.
The asset manager said on a podcast hosted by Anthony Pompliano that the SEC is likely waiting for broader jurisdiction before approving the investment product. He speculated that the regulator was awaiting instructions from US lawmakers.
The SEC is now limited, according to Eck, because the crypto regulatory conversation in the United States is not healthy.
According to Eck, relevant bodies are coming up with different suggestions on regulating the crypto sector, an aspect that will likely derail elements such as approving spot Bitcoin ETF.
“I think the SEC is holding a Bitcoin ETF hostage until they get jurisdiction over the underlying crypto markets, which they don’t have right now. <…> I think the whole regulatory dialogue is not very healthy right now where there is actually a back and forth, a pro and con, but when you get to D.C., it’s one Congressman doing their view,” said Eck.
He implied that there’s a chance that US lawmakers will muck up the crypto regulatory landscape by erecting unneeded roadblocks.
This comes after President Joe Biden signed an executive order on cryptocurrency that outlined the government’s position on digital assets. Consumer protection, financial stability, illicit activity, US competitiveness, financial inclusion, and responsible innovation are all addressed in the order.
There are more Bitcoin ETF applications on the way
Several companies have already applied for spot Bitcoin ETFs, with April 2022 having the earliest deadline with three products. Global X, BlockFi, and Grayscale are among the most popular ETF candidates.
If the SEC can control the “un-wild west” of crypto exchanges, Bloomberg’s senior ETF analyst Eric Balchunas believes a spot Bitcoin ETF might be approved shortly.
This comes after SEC Chairman Gary Gensler stated that cryptocurrency trading platforms should be carefully supervised. As a result, Balchunas saw the views as the SEC’s first indication that a spot Bitcoin ETF will be approved.
Notably, the market is anticipating the introduction of a spot Bitcoin EFT, which might have a positive impact on the asset’s price.
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