You are here

CNBC Gets SEC Latest; Talks Crypto Regulation, ICOs, Bitcoin ETFs

Retro microphone isolated on white background

On Wednesday, CNBC televised three separate cryptocurrency-related interviews, all of which were with individuals who have significant influence over the degree to which institutional capital enters into Bitcoin (BTC), Ethereum (ETH), and other particular cryptocurrencies and ICOs.

In order, the three men interviewed were Jay Clayton (SEC Commissioner), Brett Redfearn (Director, Division of Trading and Markets, SEC), and Bart Smith (Head of Digital Asset Group, Susquehanna International Group).

No Crypto Compromise From SEC

Appearing at Wednesday’s Sandler O’Neil Global Exchange and Brokerage Conference, Clayton was forthcoming in declaring his trust in the U.S. securities trading market, and the ‘Howey Test’ that determines whether an asset is a security. And that there’d be no bending of the rules for cryptocurrency and ICOs when it comes to classifying the emerging asset class.

We are not going to do any violence to the traditional definition of security that has worked for a long time.” – Clayton

CNBC’s Bob Pisani also asked Clayton to provide a status update in relation to the approval of any Bitcoin ETFs. Having established the first Bitcoin futures market last December, many issuers have been restlessly waiting on the SEC to greenlight Bitcoin ETFs.

In the above 15-minute interview, Clayton also revealed that the SEC’s Division of Investment Management is actively communicating with the industry with regards to the types of things they require in order for them to approve Bitcoin ETFs. The SEC Chairman mentioned reliable market pricing and asset verification, in particular.

Redfearn On Crypto Red Tape

Appearing in his first public interview since having recently taken on the role as director of the SEC’s division of trading and markets, Redfeard explained what the crypto-industry needs to do in order to establish a fair and efficient marketplace that is regulation-compliant.

The issue of determining a unified cryptocurrency pricing mechanism was discussed, as well as the recent interest expressed by certain industry entities who are wishing to register as an alternative trading system (ATS) and/or broker-dealer.

We are underwhelmed by the enthusiasm for coming within the regulatory structure right now.” – Redfearn

Also addressed was the potential level of market manipulation (e.g. spoofing, pump-and-dump schemes, fraud) currently occurring in the highly unregulated cryptosphere. “I cannot understate our concern about this,” Redfearn added.


Crypto King Awaits Institutional Upswing

Speaking on the panel of CNBC’s Fast Money, Smith – who the show dubbed the ‘Crypto King’ of Wall Street – talked about how Susquehanna, one of the largest players when it comes to trading traditional investments (e.g. stocks, options, ETFs), will begin offering a basket of “four or five” virtual currencies to institutional clients “who want to buy something other than cash-settled Bitcoin futures.”


Smith outlined what was currently hampering a would-be influx of institutional capital from entering the young cryptocurrency market. He suggested the arrival of a Bitcoin ETF would particularly please those oft-conservative financial institutions currently waiting on the sidelines, for it would solve many lingering unknowns, namely, things that concern taxation, custodianship, and KYC/AML regulatory requirements.

Image From Shutterstock

Related posts

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.