Former SEC Chairman: Approval of spot BTC ETF is inevitable

Source: Blockchain Knight

Less than a day is left before the SEC (U.S. Securities and Exchange Commission) deadline to approve or reject the first spot BTC ETF, various experts have come forward to share their views on possible actions taken by regulatory agencies.

Former SEC Chairman Jay Clayton also expressed his views.

The former SEC Chairman participated in CNBC’s famous “Squawk Box” show, where he shared his expectations for the 13 pending spot BTC ETF applications. Unlike some who take a conservative stance, Clayton chose the path of absolute certainty.

Clayton said: Regulators have nothing to consider when it comes to processing these spot ETF applications. Therefore, he is certain that the SEC will approve the ETF application rather than reject it.

After leaving the regulator, Clayton has been working in the Crypto asset industry for at least two years. He explained that a lot has changed today compared to when regulators rejected spot ETF applications five years ago.

Also hinted: "The reason why spot ETFs were rejected five years ago was due to illegal situations such as ladder trading, as well as various things that we did not want the public to have access to."< /p>

However, since the new applicant is a major player in the overall financial industry and due diligence is ongoing, Clayton believes there is no reason for regulators to reject spot ETFs.

Clayton said: “I think approval is inevitable, and there is nothing that needs to be decided.”

One of the unique features of this batch of spot BTC ETF applicants is that they How to follow up on the SEC’s recommendations on its application documents.

In the past few months, applicants have modified their application documents multiple times, most recently all applicants except Hashdex updated their S- 1 file.

This shows that the applicant is committed to complying with the rules and ensuring that the spot ETF is carefully designed for investors.

Interestingly, Clayton is not the only one who believes that the SEC will have no choice but to approve a spot BTC ETF. Bloomberg analyst James Seyffart also holds the same view. He believes that regulators will not be able to make applicants withdraw their applications.

Seyffart added: “The SEC has been backed into a corner and has no more reason to reject a spot BTC ETF.”

Previously, the court ruled that the SEC had no good reason to reject Grayscale’s request to convert its BTC trust into a spot ETF.

Legal expert James Murphy once said that if the SEC really rejects the application for spot ETF, then he expects all applicants to sue the regulatory agency.

If this happens, the SEC will lose again because the court will find the SEC's ruling to be "arbitrary and capricious."