According to a Bloomberg editorial, the US Securities and Exchange Commission (SEC) should embrace the opportunity to regulate the cryptocurrency market by approving a spot Bitcoin exchange-traded fund (ETF). This comes after a recent court ruling rejecting the SEC’s decision to deny Grayscale Investments’ request to convert its Grayscale Bitcoin Trust into an ETF.
The editorial suggests that the SEC should approve spot Bitcoin ETFs as long as the crypto exchanges meet the same standards as regulated financial institutions. By doing so, it would bring consistency to the industry and encourage major ETF sponsors like BlackRock and Fidelity to ensure compliance.
The approval of spot Bitcoin ETFs could also help regulate Bitcoin and other digital assets. Despite acknowledging Bitcoin’s flaws such as extreme volatility and high transaction costs, the editorial argues that it is not the SEC’s role to prevent individuals from making risky decisions. Instead, their focus should be on investor protection and ensuring industry standards are met.
