Former Chairman of the US Commodity Futures Trading Commission (CFTC) Timothy Massad believes that regulators should allow the launch of Bitcoin ETFs.
Timothy Massad served as CFTC Chairman from 2014 to 2017. He believes that the US Securities and Exchange Commission (SEC) should approve cryptocurrency ETFs, and outlined the rationale for his opinion.
First of all, exchange-traded funds (ETFs) pegged to the bitcoin rate will become one of the safest ways for retail and institutional investors to invest in cryptocurrency, Massad said. In this case, investors will not have to make a purchase of cryptoassets and deal with their storage on their own. In addition, if crypto ETFs are approved by regulators, they can increase the transparency of the emerging cryptocurrency industry.
According to Massad, the ideal path to approve Bitcoin-linked ETFs would start with establishing a strong regulatory framework for cryptocurrencies. However, the likelihood that this will happen in the near future is low. In a recent interview, Massad compared US cryptoasset regulation to “Swiss cheese full of holes.” He explained that the state of Wyoming is positioning itself as a center of innovation and is actively attracting cryptocurrency firms, while the Attorney General’s Office of New York applies aggressive measures against them. All this contributes to even greater uncertainty, since regulators of different states cannot act in a coordinated manner.
The former CFTC chairman believes that, in the absence of universal rules, the SEC may allow crypto ETFs to be opened. However, this should be done on the condition that the ETF price is based on an index of exchanges that meet certain standards that apply to securities and derivatives exchanges.
The SEC is still hesitant to approve Bitcoin ETFs due to concerns about its high volatility and the possibility of direct market manipulation. The regulator has already received many applications from firms ready to submit these investment instruments, but the SEC is constantly postponing their consideration.
The Australian Securities and Investments Commission (ASIC) has also expressed its opinion on this issue. The agency said that cryptocurrency ETFs can be risky for the financial market, so it is important to monitor them carefully.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
