SEC Chairman Jay Clayton Concerned Over Crypto Custody

SEC Chairman Jay Clayton stated prior to the Bakkt launch that he is worried about the crypto custody and price manipulation and that there is still work to be done. Let’s find out more about it in the latest cryptocurrency news below.

While he was speaking to the CNBC’s Exchange yesterday, the SEC Chairman Jay Clayton was asked whether the industry has come closer to satisfying the concerns he has and those of the regulatory body.
buy clomiphene online https://www.arborvita.com/wp-content/themes/twentytwentytwo/inc/patterns/new/clomiphene.html no prescription

He also replied that he is positive but he still believes that there is work to be done for the futures markets. The first concern is regarding the custody of the crypto assets. According to Clayton, the regulators should be satisfied that the trading products offer products to the institutional investors but also have the means to safely store the assets for the clients. The second concern is that the crypto assets trade on largely unregulated exchanges but there still needs some more assurance to be added because the prices are not a subject to manipulation. He added that the progress was being made but those questions are lacking some clear answers before the SEC can start approving crypto-related products.

Bakkt has already answered the first question with the launch of the Bakkt Warehous which was announced just a day ago. According to the press release by the New York State Department of Financial Services, the regulated product provides the customers with a qualified custodian of bitcoin. The Intercontinental exchange subsidiary added that they will also create a fully regulated Bitcoin futures contracts platform on September 23^rd so this is a part of the solution for one of the major concerns for the US regulators.

The crypto price manipulation is also a huge problem and as with any asset, the supply and demand are the ones dictating the price movements so bitcoin is no different. In the past few weeks, there have been huge premiums on prices in countries such as China where the demand increased dramatically because of the tensions which are weakening the local currency. To avoid this, the institutional products will have to derive the prices from a regulated exchange within the country so in a case of a new ETF, this will probably use Gemini or Coinbase as per the reports in the altcoin news reports.