Sec And Cftc Cryptocurrency Regulatory Trends Are More Complex
The SEC has delayed the Bitcoin ETF application several times. Many people may already feel a bit numb to the news of the Bitcoin ETF. In view of the delay in the regulation of the Bitcoin ETF in the US, the market’s mentality towards the ETF has undergone multiple changes: from the very beginning. Expectations of recognition in the mainstream financial market, fears of being rejected many times in the process, and now the tidy money is tired and wait-and-see after the bear market.
Recently, at a group meeting held by the Washington DC’s bipartisan policy center, the CFTC and SEC members of the two major regulators reunited. After reading the parties, they seem to have moved toward two completely different directions. Therefore, at the regulatory level, the various regulators or the opposition or cooperation signals from different regulators and individual members of the regulator have created more confusion and obstacles for the market and investors.
From disputes to cooperation, from opposition to synergy, regulation moves to more complex forms, and there are different sources and demands behind it.
Q: Is the SEC and CFTC release at this stage to release this cooperation intention to help or have any impact on the current Bitcoin ETF application?
A: I personally think that, on the one hand, it also represents the face of the US financial community’s digital assets. By nature, multiple attributes of an encrypted asset can be defined as commodities or securities, which means that both the SEC and the CFTC have the authority to regulate. Relatively speaking, the CFTC has been relatively positive in its attitude towards digital assets. For example, the SEC has always stressed that bitcoin is vulnerable to price manipulation, and the CFTC has different opinions. The cooperation between the two institutions also means that a more consistent attitude is likely to emerge in the future in terms of regulation. On the other hand, when the supervision of the two institutions of the SEC and the CFTC is unified, the standardization of the digital asset market and the degree of supervision will also be strengthened, which is a good thing for the market.
Specific to the ETF, the cooperation between the two agencies may make the SEC aware that the bitcoin that was mentioned repeatedly is subject to price manipulation, price fluctuations and other characteristics that can be improved, and the possibility of approval will increase.
Q: On the one hand, US regulation is reluctant to sign Bitcoin ETFs. On the other hand, members of the regulatory body are constantly releasing “not to delay ETF applications multiple times” or “ETF approval is only a matter of time”. Many, do you think this situation will cause confusion in the market’s understanding of regulatory attitudes and positions? Or is this just a necessary process?
A: I personally think that “not supposed to” delay the ETF application multiple times does not mean that the supervisory members believe that the ETF has not been approved many times is unreasonable. Because at this stage, the normative nature of the encrypted digital asset market represented by Bitcoin has a series of problems. High volatility, weak regulation, and ease of manipulation are all important reasons for the approval of their ETFs. ETFs want to be approved not only for the specification of the digital asset market, but also for the support services outside the market. Recently, NASDAQ launched two cryptocurrency liquidity indices. They are BLX and ELX respectively. All kinds of signals mean that ETF launch is really only a matter of time, but the long or short time needs to look at the normative and out-of-market support within the market.