Better regulation is needed around bitcoin markets before they can be traded on major exchanges, the head of the U.S. Securities and Exchange Commission said on Thursday.
Speaking at CNBC’s Delivering Alpha conference, SEC Chairman Jay Clayton said investors are “sorely mistaken” if they think bitcoin and other cryptocurrencies undergo the same price discovery practices as products on top exchanges like the Nasdaq or New York Stock Exchange.
Clayton said price reports do not indicate thorough price discovery, as he claims major exchanges perform for other financial products. Investor protections built into major exchanges, he continued, are needed in crypto markets before they can be added.
The financial regulator is nearing deadlines for approving or rejecting bitcoin ETFs from Wilshire Pheonix and Bitwise Asset Management.
Jay Clayton image via CoinDesk archives
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