U.S. Securities and Exchange Commission (SEC) Commissioner Robert J Jackson Jr is optimistic that a “fund based on bitcoin” will eventually be approved, according a recent interview with Congressional Quarterly.
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“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so,” said Jackson.
The interview is slated to be released on Feb. 11, however, leaked documents have surfaced on Twitter.
Jackson stated there are numerous cryptocurrency-based applications awaiting a decision from the SEC.
In July, the SEC voted 3-1 rejecting a proposal by Bats BZX Exchange Inc. to list and trade shares of the Winklevoss Bitcoin Trust.
The regulator stated the product did not meet adequate standards to prevent fraudulent and manipulative acts and practices.
BZX Exchange claimed bitcoin markets are innately difficult to manipulate, but the SEC argued the proposal lacked any kind of surveillance, commonly found in traditional stock markets.
The three commissioners who voted against went on to state that they were concerned with the lack of liquidity, the trading volume, and the ability to safeguard proprietary information.
The one commissioner who voted in favor of the fund was Republican Commissioner Hester Peirce.
In September, Peirce said the SEC was acting like an overprotective “helicopter parent,” stating that it’s not the agency’s place to determine whether emerging technologies like cryptocurrencies will ultimately succeed or fail.
“The case that we had before us last year involving the Winklevoss trust, in my view, was not a difficult case,” Jackson said.
“So there you had a situation where the risk for manipulation and for people getting hurt was enormous. The liquidity issues in the market were very serious.”
According to Jackson, the denial has encouraged other proposals to meet with the SEC to see how they can their standards.
In January 2018, the SEC sent letters to several companies which included a long list of questions to answer before clearing a path to approval.
“Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard and it should be,” stated Jackson.
“Once we put the stamp of the United States Securities and Exchange Commission on an investment, once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt.”
Stay tuned to Blockchain Daily as we will be gathering more updates regarding the SEC’s final decision.