WSJ Crypto reporter supports the SEC’s Bitcoin ETF ruling, claims they are “valid”
Crypto Investors were struck a heavy blow by last week’s Securities and Exchange Commission (SEC) announcement regarding the denial of nine Bitcoin-backed ETF proposals from ProShares, Direxion, and GraniteShares. The US government agency cited “significant size” and incidents of fraud and manipulation as arguments for their ruling, as indicated by their three individual documents released.
The SEC has remained to stay and “review” the denial verdict, but their concerns resonate with many, one of which is the Wall Street Journal’s top crypto reporter, Paul Vigna.
In his appearance on CNBC discussing the regulatory state of Bitcoin and other crypto backed ETFs, he mentioned, “The SEC’s concerns are very valid… for a currency that makes a big deal out of having a public transaction ledger, there is not a lot of transparency with exchanges – what’s going on behind the scenes. You can see the price, the transaction but you don’t really know who is doing the exchanges.”
Paul Vigna goes on to juxtapose the new and the old. While comparing crypto and capital markets he notes that such legacy exchanges have oversight, solid foundation of identity and background of its customers. He mentioned that these systems allow firms like the International Exchange to enforce regulations and look out for any “anomalies and any kind of manipulation.” Despite these internal and third-party checks and balances, individuals do engage in malfeasance and “game these markets” leaving the digital currency in regulatory shambles.
There is a rift in this process, on one hand, the Bitcoin ETF will certainly bring an impetus in the market, but on the other hand, the very ethos of decentralization will be distorted, as pointed out by CNBC’s Mellisa Lee. Paul Vigna backed this “rift” claiming there will always be a divide between diehard decentralists and the bitcoin custody ETF vehicles and reiterating that it is unimaginable to see the SEC approving a Bitcoin ETF without a custody solution.
Concluding with a statement in support of the SEC’s role in the cryptocurrency industry, Paul Vigna stated, “I think we’re at the point that good governments aren’t looking at this (crypto) as something they need to clamp down on, outlaw it, or drive it out of existence. They see that there is potential here and we have something that might be able to benefit people.”
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