SEC Chair: Spot Bitcoin ETF Approval is ‘Inevitable,’ and It’s Expected on This Date

• Former SEC Chairman Jay Clayton forecasts a spot Bitcoin ETF approval is unavoidable, with mid-October as a potential announcement date.
• A recent court ruling signifies a turning point, potentially making it challenging for the SEC to deny future spot Bitcoin ETF proposals on grounds of market manipulation or fraud.

In a notable development that has the crypto community abuzz, Collin Brown, a blockchain researcher and contributor to multiple cryptocurrency news platforms, recently amplified the significant remarks made by Jay Clayton, former chairman of the U.S. Securities and Exchange Commission (SEC). Taking to Twitter, Brown highlighted,

🚀 Former SEC Chairman Jay Clayton predicts the approval of a spot Bitcoin ETF is inevitable! 📈 The SEC might make the announcement in mid-October, or it could take a bit longer, but progress is on the horizon for crypto enthusiasts. 🪙💼 #BitcoinETF #Bitcoin #BTC pic.twitter.com/PdRD4cBWNj

— Collin Brown (@CollinBrownBTC) September 4, 2023

The Clayton Pronouncement

In a significant shift of tone from the regulatory body, Jay Clayton, the former chairman of the U.S. Securities and Exchange Commission (SEC), confidently affirmed that a spot Bitcoin ETF approval is “inevitable.” Speaking to CNBC, Clayton clarified that Bitcoin isn’t classified as a security, emphasizing the increasing demand among both retail and institutional investors. He articulated that the retail public’s trusted providers, who serve as fiduciaries, are also keen on offering this groundbreaking financial product.

The Court’s Pivotal Ruling

A recent federal court ruling in the Grayscale vs. SEC case has set the stage for spot Bitcoin ETFs. The court denounced the SEC’s earlier rejection of Grayscale’s proposal to convert its Bitcoin Trust into an ETF as “arbitrary and capricious.” The judgment emphasized that fraud and market manipulation risks in spot Bitcoin markets are no more significant than those in Bitcoin futures markets, challenging the SEC’s previous stance and laying the groundwork for potential future approvals.

The Regulatory Conundrum

The SEC currently faces the daunting task of deciphering the ever-evolving crypto landscape. Clayton conceded that while there could be new reasons for rejecting Grayscale’s proposal, he was uncertain about what those might be. Furthermore, Clayton noted the keen interest from trusted financial providers to introduce Bitcoin products to the retail public, an initiative that could drive Bitcoin’s mass adoption.

A Tipping Point for Other Applications

Major financial institutions like JPMorgan are increasingly optimistic. They foresee the SEC eventually yielding to approve spot Bitcoin ETF applications, especially after Grayscale’s victory in its case against the SEC. As deadlines for additional spot Bitcoin ETF decisions from firms like BlackRock, Fidelity, and Invesco draw nearer—expected at least by mid-October—anticipation builds for what could be a transformative period for cryptocurrency regulation and the market as a whole.

Watch the complete interview with Jay Clayton on ‘Squawk Box’ to explore more about the SEC’s approach to Bitcoin ETF applications.

Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.