Mike Belshe bases his opinion on the business structure of the largest American exchange Coinbase. The thing is that Coinbase does not separate its merchant services business from its custodial business. And in a large number of applications for spot ETFs, it is the American exchange that is listed as a partner for storing digital assets.
“There are many risks in setting up the Coinbase business that we do not understand. There is a high probability that the SEC will refuse to approve applications until these services are completely separated,” said Mike Belshe.
Indeed, one of the main arguments of SEC representatives in past refusals to approve applications for ETFs was precisely the risks of market manipulation and the lack of investor protection in the current organization of asset storage.
Earlier, Shark Tank host Kevin O’Leary suggested that the US SEC could take another year and a half to approve a spot Bitcoin ETF. To do this, you need a crypto exchange that fully complies with SEC requirements.
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