The US Securities and Exchange Commission (SEC) has now entered an active study period. You are eagerly searching for exchange-traded funds or cryptocurrency-based ETFs, and therefore traders may find themselves reaping the benefits of such opportunities very soon.
The SEC seeks to shed its “rigid” image
News of the study session was announced at a conference by Jay Clayton, president of the SEC. This is something that should really strike a chord with most investors around the world, especially in the US, considering how long they have waited for a crypto-based ETF. Several companies have tried to get one approved, like Bitwise, and few have gone far.
The SEC has clearly shown in the past that it doesn’t understand cryptocurrencies the way it should. Otherwise, we would have already seen a bitcoin ETF emerge, although to be fair, digital assets are still considerably newer than fiat currencies or even copper, which was one of the more recently approved ETFs allowed by the SEC.
For the most part, it appears that the SEC views cryptocurrencies in a negative light. Something that is extremely vulnerable to price fluctuations and can put people through investment hell. Furthermore, cryptocurrencies have a long history of attracting criminal behavior, which will not sit well with a government body.
Still, this doesn’t take away from all the good that crypto can do, and it’s about time the SEC stepped up to take a closer look at this growing investment field. The SEC has joined with several other financial firms, including the Office of the Comptroller of the Currency and the Commodity Futures Trading Commission (CFTC) to discuss how each crypto product should be monitored and regulated.
Clayton admits that the SEC has been quite “rigid” when it comes to cryptocurrencies in the past, but it seeks to help the agency shed this current image and be more open-minded when it comes to new investment opportunities. Clayton recently announced that he approved the first securities registration for a company looking to sell digital tokens through a public offering last August.
Get it right and we’ll work with you
Our door is wide open. If you want to tokenize the ETF product in a way that adds efficiency, we want to meet with you and we want to make it easy. Of course, you have to register it and do what you would do with any other ETF.
The statement makes clear that the SEC is not necessarily anti-crypto, although several companies have sought to initiate events such as public token offerings without undergoing the proper registration protocols, which have often led to heavy penalties and a ban on certain companies. and figures of the cryptographic space. The SEC simply wants organizations to follow the rules, and those that don’t are likely to face dire consequences.