SEC’s regulation on crypto-universe - Guidelines for BTC ETFs

As the US financial watchdogs including the Securities and Exchange Commission (SEC), CFTC have been exhibiting their stringent actions in regulatory frameworks. Kara Stein, the SEC Commissioner, gave her stances on the FinTech industry as well as the Bitcoin Exchange-Traded Fund (ETF) in the recent past.

While earlier Monday, the independent regulator for enforcement of securities laws suspended trading in securities of a company for publishing false and misleading information. The regulator has, further, published a press release with the details of the firm and violations on its official website. The firm had issued statements claiming that it had collaborated with an “SEC-qualified” custodian for cryptocurrency transactions. Another announcement regarding the issue of a public offering of preferred stock claimed to be compliant to SEC regulation is also alleged to be false.

On the flip side, Kara Stein commented as to how the SEC is heading towards oversee developments in the industry, citing the establishment of the Strategic Hub for Innovation and Financial Technology. There has been a proper setup for the security body to analyse exchange and trade.

She also mentioned about many crypto enthusiasts are tend to get benefitted in the gamut of cryptocurrencies and such players are being meticulously observed by staff letters that are drafted by the SEC.

The staff letter tackles apprehensions in the valuation of the cryptocurrency, liquidity matters, and few other underlying drivers that defines resourcefulness of this commodity.

“The underlying factors are proposed by us in the same way that a car needs to have seatbelts and airbags before it can be fully operational. It is necessary for everyone’s safety,” she stated.

The predominant objectives and duties of the organization is to decide whether commodities like Bitcoin and other major cryptocurrencies could be categorized as security or not and whether it is developed on the form of technology used, added Stein.

The veteran seemed candid to accept what caused as the obstacles in the approving the Bitcoin ETFs. 

She briefed some basic prerequisites of the approvals of BTC ETFs, and the applicants have to adhere to these basic guidelines. Bitcoin should clearly exhibit as to how the valuations are derived, investors’ protection through substantial liquidity at any given time and ensure physical custody. Thereby, the investors are ensured with the crystal-clear guidelines for the ease of implementation of Bitcoin ETFs, only if the applicant companies strictly abide by these regulations, the SEC commissioner stated.

Currency Strength Index: FxWirePro's hourly BTC is flashing at 156 (bullish), hourly USD spot index is flashing at 19 (which is neutral), while articulating at 05:48 GMT. 

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