The investing industry has taken steps toward addressing the issues that make regulators uncomfortable about allowing an exchange-traded fund made up of cryptocurrency assets, the chairman of the Securities and Exchange Commission told CNBC on Monday.
Asked whether “the people involved in the bitcoin businesses… in any way come close to satisfying your concerns,” SEC Chairman Jay Clayton said that “the short answer is yes, but there’s work left to be done.”
Clayton characterized the SEC’s concerns as “not trivial.” Among them: Would the assets actually be held by the funds?
“And an even harder question,” Clayton said, “given that they trade on largely unregulated exchanges: How can we be sure that those prices aren’t subject to significant manipulation?”
Overall, he concluded, “progress is being made.”
A cryptocurrency industry publication, CoinDesk, on Monday noted that the SEC is expected to take action on two proposals for bitcoin BTCUSD, +1.11% ETFs in the coming weeks.