The Securities Exchange Commission (SEC) is likely holding the spot bitcoin exchange-traded fund (ETF) hostage over failure to approve the product, says Jan van Eck – CEO of global investment management firm VanEcK. He believes the agency might be awaiting broader jurisdiction to approve the investment product.
Eck said SEC might be awaiting direction from the US lawmakers. However, the agency is currently limited because of the “unhealthy crypto regulatory conversation” in the United States. Eck highlighted that relevant bodies are coming up with different suggestions on regulating the crypto sector. He said it will likely derail elements such as approving spot bitcoin ETF.
The executive believes that the US lawmakers might mess up the crypto regulatory outlook by creating unnecessary barriers. The US president signed the executive order on digital assets yesterday, establishing the government’s stand on cryptocurrency. It draws focus on consumer protection, financial stability, money laundering, US competitiveness, responsible innovation, financial inclusion, and illicit activity.
Last month, the SEC chose not to decide on whether to allow the listing of a spot bitcoin ETF by Bitwise Asset Management. The agency asked for public comments on aspects of the fund’s application. It said it would use proceedings to decide whether to approve or reject Bitwise Asset Management’s listing.
It should be noted that in recent months, SEC has denied spot bitcoin ETFs by several issuers, including SkyBridge, Valkyrie, and Fidelity.