The recent announcement by the United States Securities and Exchange Commission (SEC) that it was considering recognizing and approving ETF was indeed positive news for the crypto world in the US.
The delay in the final approval, according to SEC Chairman Jay Clayton, was as a result of the lack of clarity on the course of action and regulations set to be introduced. At present, the Bitcoin ETF area is susceptible to illegal monetary activities such as the contrived controlling of the financial market.
While awaiting the final approval, Clayton made special mention of the individual efforts to seek the consent for an ETF even whose foundation is a package of altcoins. This statement was in answer to questions raised in a discussion on CNBC on June 6, 2019. All of this is indeed very positive, but the winning post is still some way away before the final approval and recognition of ETFs.
The road to the approval of Crypto ETFs
One of the most critical requirements, before being approved and receiving the license to operate, is ownership, and this verification is still outstanding. Any persons or company looking to be granted the right to conduct an ETF must provide all the relevant documentation showing that they have full ownership of the ETF and this, in turn, has to be substantiated by the SEC
Clayton continued to explain that online cryptocurrency platforms and bitcoin trading, amongst others, are generally uncontrolled and there are no systems in place to monitor the illegal engineering of commodities.
A great deal of work is going into having this lack of regulation changed, but the crypto trading world is a far cry from the stock exchange.
The final stages of approval for ETF
SEC Commissioner Hester Pierce put forward that the legislation about the ETF should be expedited to allow for transformation in the ETF sphere. All of these statements are seen as positive as the market traders look to the final acceptance and approval of crypto ETFs.
All of this comes on the back of the recent court case between SEC and Longfin Corporation and its CEO Venkata Meenavalli, where the latter was charged with embezzlement.
Just two years ago, the value of Longfin grew dramatically, and the company declared that this was as a result of a change in operational practices which now leaned towards blockchain technology. The SEC refuted this statement as it believed the rise to be as a result of multi-faceted illegal operations.
What does the future of the cryptocurrency market hold?
The signs for the cryptocurrency markets, the buying of Bitcoin, are favorable. The vision of Satoshi who looked at improving the money of the future may differ from the direction of the Government regulators, but it has become increasingly evident, that the crypto market must be controlled. It is only with regulation that unknowing and inexperienced capitalists can be shielded against defrauders.
These regulations could see the sustainability of the crypto market – only the future will tell.