• Jay Clayton voiced his opinion in an interview with CNBC on Monday.
  • The former SEC chairman said it would be difficult for the SEC to reject spot bitcoin ETFs if applicants prove their validity and are subject to oversight.
  • BlackRock, Fidelity and others have market surveillance agreements with Coinbase.

The U.S. Securities and Exchange Commission (SEC) has so far rejected all spot Bitcoin ETF applications.

But now may be the time for regulators to give the product their seal of approval, former SEC Chairman Jay Clayton said Monday.

If their claim that the spot market is as powerful as the futures market is correct, it would be hard to resist approval of a Bitcoin ETF.” Clayton Said CNBC’s Squawkbox.

SEC Approval of Futures ETFs

This is a contention by applicants, particularly in the way BlackRock, Fidelity, and others have taken steps to comply with requirements previously cited as grounds for SEC disapproval.

Notably, the proposal by CBOE and Nasdaq includes a market surveillance agreement, the so-called Surveillance Sharing Agreement (SSA) with major crypto exchange Coinbase.

Noting this and the fact that the SEC has approved futures-based ETFs based on this, Clayton added:

When the SEC approved futures-based ETFs, they said, “Look at the futures market. I don’t see them on the spot market, so I’m going to make that distinction. I think what financial institutions are arguing is that these distinctions will disappear and spot products will be less hectic and more efficient for investors.

With no delta in regulation and efficacy, the SEC needs to approve the first spot Bitcoin ETF for the US market. As emphasized earlier, Clayton believes it will be “difficult” for the SEC to “resist” spot ETFs any further once applicants prove their validity.

As CoinJournal reported last week, analysts at the $650 billion asset manager Bernstein said the odds of a spot bitcoin ETF being approved are “very likely.”

Since BlackRock submitted its proposal in mid-June, the cryptocurrency market has been mostly optimistic about approval. This optimism is reflected in Bitcoin’s price surge following the news, hitting a year-to-date high above $31,000 last month.

By Jules

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