eX-SEC chairman says regulatory approval for Bitcoin spot ETF products is inevitable 

Jay Clayton believes that Bitcoin spot ETF applications will surely succeed in securing regulatory approval in the near future.

Jay Clayton is a former chairman of the United States Securities Exchange Commission (SEC). He was SEC boss from 4 May 2017 until 23 December 2020. He was nominated by former president Donald Trump. Clayton was very controversial during his tenure at the SEC for the crypto sector, something similar to the current SEC chairman Gary Gensler.

On 1 Sep 2023, the former SEC chairman Jay Clayton appeared in an interview with CNBC Squawk Box & shared his opinion on the possibility of regulatory approval for the Bitcoin spot ETF applications, and said that there are full chances for these products to get approval from the SEC.

Clayton clarified his statement and said that it is clear that Bitcoin is a Security token, so there are not such huge problems with this top market cap crypto asset and also said that the majority of people want to invest in Bitcoin. 

On the currently waiting Bitcoin spot ETF applications by the giant fund manager companies like BlackRock, Fidelity, and Ark Invest, Clayton said that such giant companies showed that there are effective methods & ways to prohibit price manipulation, which was earlier a very big concern under the purview of the SEC body.

Grayscale vs SEC

In the past, Grayscale’s Bitcoin spot ETF application was rejected by the US SEC. Grayscale challenged the SEC’s decision in the court.

Just a couple of days ago, the court judge ruled in favour of Grayscale and said that the rejection of Bitcoin ETF application by the SEC body was wrong because Bitcoin spot ETFs & Bitcoin futures ETFs are similar products, as the SEC lawyers failed to distinguish between these two products.

Read also: Crypto firm Grayscale secures regulatory win against US SEC