SEC Chairman: Bitcoin needs ‘better regulation’ to trade on major exchange

Bitcoin won’t be traded on real exchanges like NYSE or Nasdaq until they are strongly regulated, says SEC chairman.

September 9, 2019, | AtoZ Markets – Bitcoin would need better regulation before they can be traded on major exchanges, Jay Clayton, the head of the U.S. Securities and Exchange Commission (SEC) said on Thursday.

Bitcoin can’t trade on major exchanges without better regulation

While speaking at a conference hosted by CNBC and Institutional Investor, 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 (NYSE).

“We have to get to a place where we can be confident that trading is better regulated.”

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.

Clayton’s comments on cryptocurrencies come comes on the heels of VanEck and SolidX withdrawing their Bitcoin exchange-traded fund (ETF) proposal from the SEC review. Clayton also said earlier this month that while “progress is being made” on the bitcoin ETF, bitcoin businesses still need to address some of the SEC’s lingering concerns, citing crypto custody and the threat of price manipulation on unregulated exchanges.

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