SEC Chair Clayton: Bitcoin Needs ‘Better Regulation’ Before Major Exchange Listing

SEC Chair Clayton: Bitcoin Needs 'Better Regulation' Before Major Exchange Listing

Better regulation is needed around markets before they can be traded on major exchanges, the head of the U.S. Securities and Exchange Commission said on Thursday.

Speaking at CNBC’s Delivering Alpha conference, SEC Chairman Jay Clayton said investors are “sorely mistaken” if they think and other cryptocurrencies undergo the same price discovery practices as products on top exchanges like the Nasdaq or New York Stock Exchange.

“We have to get to a place, in my view — just speaking for myself — we have to get to a place that we can be confident that trading is better regulated.”

Clayton said price reports do not indicate thorough price discovery, as he claims major exchanges perform for other financial products. Investor protections built into major exchanges, he continued, are needed in markets before they can be added.

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Clayton’s message follows remarks made earlier this month concerning a exchange-traded fund (ETF). Clayton claimed there is “work left to be done,” although “progress is being made.”

The financial regulator is nearing deadlines for approving or rejecting ETFs from Wilshire Pheonix and Bitwise Asset Management.

A third ETF applications, Cboe BZX Exchange VanEck/SolidX bitcoin ETC, was withdrawn earlier this week as an October 18 deadline loomed and approval seemed unlikely.

Jay Clayton image via CoinDesk archives

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