Ex-SEC Chair Foresees Inevitable Approval of Bitcoin ETF

During an appearance on CNBC’s “Squawk Box” on Monday morning, former SEC Chair Jay Clayton expressed a firm belief that the approval of a potential Bitcoin spot ETF is practically assured. Clayton confidently stated, “I think approval’s inevitable…and I think there’s nothing left to decide.”

Nominated as SEC chair by Donald Trump in 2017, Clayton concluded his term at the end of 2020. Towards the end of his tenure, the SEC, under Clayton’s leadership, filed charges against Ripple for an alleged unregistered securities offering. Subsequently, a judge’s ruling delivered partial victories to both Ripple and the SEC, determining that the programmatic sale of the XRP token did not constitute an investment contract.

In October, the SEC moved to dismiss charges against Ripple CEO Brad Garlinghouse and former executive Christian Larsen. Since leaving the SEC, Clayton has actively immersed himself in the crypto space. In 2021, he joined the advisory board of the crypto custody platform Fireblocks. Clayton continues to be a prominent voice in discussions about crypto regulation and is now closely involved in the evaluation of several pending applications for Bitcoin spot ETFs.

Grayscale faced obstacles in obtaining approval for its Bitcoin spot ETF throughout Clayton’s term. In a recent discussion, Clayton hinted at a shift in his perspective on the service, stating, “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.”

During Clayton’s leadership, the SEC consistently rejected attempts to launch a Bitcoin ETF. A crucial decision on potential spot Bitcoin ETFs is anticipated later this week, with the SEC having until January 10 to provide a verdict on the Ark 21Shares Bitcoin ETF proposal. In preparation for a potential decision, issuers have already submitted amended registration filings outlining fees and other critical details.

As investors await the SEC’s decision, Bitcoin’s price surged past $47,000 on Monday, reflecting the anticipation of approval for several spot Bitcoin ETFs. Adding to the speculation, current SEC Chair Gary Gensler shared a Twitter thread on Monday outlining risks associated with crypto investments, fueling expectations of an imminent decision from the regulatory agency.

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