SEC Commissioner Jackson Optimistic About Proposed Bitcoin ETF

A long interview between SEC Commissioner Robert J Jackson Jr and Congressional Quarterly (QC) is set to be published on February 11; however, the draft copies of the interview have already been circulated on social media.

The leaked paper proposes that ‘Bitcoin ETF will eventually be approved”. Cryptocurrency investors have long sought a US-based fully regulated Bitcoin exchange-traded fund (ETF); however, the Securities and Exchange Commission (SEC) has repeatedly delayed the decision due to concerns over the crypto market. The ETF request was first published on the Federal Register on July 2 2018, from which point they have 180 days to respond. 180 days brought the date to December 29, 2018; yet, this was extended by 60 days to February 27, 2019, due to special consideration.

Crypto enthusiasts are waiting for the answer in February and hoping that it marks a new era for Bitcoin. It is true that many people have assumed that the wait will ultimately end in disappointment, with the proposal being rejected, however, Jackson has made some optimistic statements on the matter.

Excerpt from the leaked documents:

“Among the more prominent SEC actions on bitcoin was a 3-1 vote in July to reject a proposal by Bats BZX Exchange Inc, to list and trade shares of the Winklevoss Bitcoin Trust. The agency deemed the fund inconsistent with the Securities Exchange Act Section 6(b)(5), which includes requirements to prevent fraudulent and manipulative acts and practices.

The BZX exchange argued that bitcoin markets are inherently difficult to manipulate. But the SEC found that the proposal doesn’t establish the kind of surveillance common in stock markets, and the commissioners also were concerned with the lack of liquidity in certain bitcoin markets, their trading volume and the ability to safeguard proprietary information.”

Republican Commissioner Hest Peirce was the only commissioner to vote in favor of the fund at the time, accusing the SEC of acting like an overprotective ‘helicopter parent’. However, other commissioners argued that this wasn’t about denying Bitcoin or blockchain, but simply that BZX wasn’t meeting the standard that is expected of the SEC.

Despite the delays and rejections relating to cryptocurrency in the past, Jackson appears optimistic about Bitcoin being approved in the future, stating:

“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”

We will have to wait until February 11 to see if Jackson’s optimistic comments will be included in the officially released documentation.

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