Former SEC chair calls bitcoin ETF approval ‘inevitable’

Jay Clayton rebuffed spot bitcoin ETFs during his term, but he thinks the SEC is ready to give the green light

article-image

Former SEC Chair Jay Clayton

share

In an appearance on CNBC’s “Squawk Box” Monday morning, former SEC Chair Jay Clayton said he thinks approval on a potential bitcoin spot ETF is a foregone conclusion. 

“I think approval’s inevitable…and I think there’s nothing left to decide,” Clayton said.

Clayton was nominated as SEC chair by Donald Trump in 2017 and resigned from the position at the end of 2020. 

Near the end of his term, Clayton’s SEC brought charges against Ripple over an apparent unregistered securities offering. Since then, both Ripple and the SEC were handed partial wins when a judge ruled that the programmatic sale of the XRP token was not an investment contract.

The SEC also moved to dismiss charges against both Ripple CEO Brad Garlinghouse and former executive Christian Larsen back in October.

Read more: Investors are ‘the clear winners’ as bitcoin ETF fee battle comes into focus

Clayton has since become involved in the crypto space. In 2021, he joined an advisory board at crypto custody platform Fireblocks. He has been an active voice in discussions about crypto regulation — and now, the several pending applications for bitcoin spot ETFs. 

Grayscale was stymied in getting its bitcoin spot ETF approved throughout Clayton’s term. In the segment, Clayton seems to allude to his seeming about-face on the service.

“Five years ago there was wash sales, there was laddering, there was all sorts of things that you wouldn’t want to make available to the general public,” Clayton said. 

Clayton’s SEC rejected bids to launch a bitcoin ETF during his tenure.

A decision on the potential spot bitcoin ETFs is expected later this week. The SEC has until Jan. 10 to give a bitcoin ETF proposal from Ark 21Shares a decision. Potential issuers have already submitted amended registration filings detailing fees and other key details in anticipation of a possible decision. 

Bitcoin’s price spiked past $47,000 Monday as investors anticipate SEC approval of several spot bitcoin ETFs. 

Current SEC Chair Gary Gensler penned an X thread Monday morning outlining some of the risks involved with investing in crypto, adding fuel to speculation that the agency’s decision is imminent.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million