Former US SEC Chair Jay Clayton: Spot Bitcoin ETFs Should Be Approved

Crypto Market News: Former U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton on Monday indicated that there was a clear shift in the way futures and spot Bitcoin markets are viewed at, in the wake of the recent flurry of spot ETF applications from the likes of asset managers Blackrock, Fidelity and Valkyrie. He said there is a reasonable chance that the US regulators may approve the spot ETF applications if the distinction in protection and surveillance between the two products is explained. This comes after Standard Chartered bank reviewed its Bitcoin price prediction for the next two years.

Also Read: Standard Chartered Revises Bitcoin (BTC) Price Prediction To $50000, $120K In 2024

In an interesting shift of attitude, Clayton, who was a crypto skeptic during his time at the SEC, on Monday admitted that he was ‘very skeptical’ of the Bitcoin market when he was SEC Chair. However, he suggested that the current circumstances are ripe for approval of the spot ETF.

Time For Spot Bitcoin ETF Approvals

Speaking to CNBC on Monday, Clayton said it was earlier perceived that only the futures market offered the surveillance and protections in the market for the end investor, as against the spot ETF application. However, the spot ETF seekers argue that the distinction is not existent anymore. Hence, if the applicants can demonstrate that the spot market has similar efficacy to the futures market, Clayton said, it would be difficult to turn down the spot Bitcoin ETF applications, following the precedent set by the previously sanctioned futures based ETFs.

“I was very skeptical with trading in the Bitcoin market when I was SEC Chair. But if you can demonstrate that the spot market has similar efficacy to the futures market, it would be hard to resist approving a Bitcoin ETF.”

Meanwhile, the crypto market continues to be strangled in legal crosshairs as Coinbase and Binance fight the SEC over charges of violating securities laws.

Also Read: $500 Million Crypto Asset Inflows Set Bulls Retaking $50K Bitcoin (BTC) Price