A former chairman of the US Commodities Futures Trading Commission (CFTC) said the SEC won’t green light a crypto exchange traded fund (ETF) anytime soon.
Delta Strategy group head Jim Newsome commented on SEC chairman Jay Clayton’s continued rejection of crypto-ETFs in a panel discussion at a West Tech Fest blockchain event.
“I think because [Clayton] chose to do this in a public forum, it sends a message that under his leadership, he’s probably not going to approve an ETF,” said Newsome.
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The commission cited the risk of fraud and market manipulation as the reason for the denied applications.
Newsome said regulation is key in the blockchain industry, and assists startups to remain compliant by educating companies in the benefits of regulation.
“At the end of the day, I think appropriate regulation leads to more credibility within what we are trying to achieve,” said Newsome.
Newsome was previously President and CEO of The New York Mercantile Exchange (NYMEX) and now serves as a regulatory advisor for the Global Blockchain Business Council.