Pro-XRP lawyer John E Deaton has responded to the recent U.S. Securities and Exchange Commission (SEC) decision to <\/span>delay <\/span><\/a>the approval of a Bitcoin exchange-traded fund (ETF) by global asset manager BlackRock. Deaton, referencing recent statements by former SEC Chairman Jay Clayton, highlighted concerns that regulators may prioritize institutional interests over retail access.<\/span><\/p>\n Notice that Clayton says until the large institutions (eg BlackRock) offer it, we won\u2019t allow retail access. He literally admits that\u2019s how it works in the United States. Now, of course, he couches it all in the name of investor protection, which I reject as bullshit. We are\u2026 https:\/\/t.co\/Eb04fLuHhG<\/a><\/p>\n <\/p>\n \u2014 John E Deaton (@JohnEDeaton1) September 1, 2023<\/a><\/p>\n<\/blockquote>\n \u00a0<\/p>\n The SEC\u2019s hesitance isn\u2019t new when it comes to the cryptocurrency realm. In a squawk box <\/span>interview<\/span><\/a>, former SEC Chairman Jay Clayton acknowledged the apparent demand from retail and institutional investors for access to Bitcoin. While Clayton agreed that Bitcoin isn\u2019t classified as a security, the debate centers on whether the cash trading market could be easily manipulated to a degree that might preclude retail access.\u00a0<\/span><\/p>\n <\/p>\n However, the tides might be turning with large financial institutions introducing surveillance mechanisms. These institutions are vouching for the legitimacy of the cash market, suggesting that it\u2019s now an appropriate product.<\/span><\/p>\n <\/p>\n Citing Clayton\u2019s words, Deaton expressed frustration, insinuating that regulators in the U.S., under the guise of \u201cinvestor protection,\u201d may be biased in favor of large financial entities like <\/span>BlackRock<\/span>. He contends that by delaying decisions like these, regulators might attempt to manipulate crypto prices to benefit these \u201cincumbent friends.\u201d<\/span><\/p>\n In his interview, Clayton emphasized the difference between a Bitcoin futures product and a cash product, hinting that this distinction might not be sustainable in the long run. Despite the SEC\u2019s delay, he remains optimistic about the future, pointing out that the 45-day window for reconsideration isn\u2019t a significant delay in the broader context.<\/span><\/p>\n The tension between the need for regulatory prudence and market demand for Bitcoin ETFs continues to shape the landscape. While the <\/span>SEC\u2019s<\/span> decision to delay might be seen as a precautionary move, voices like Deaton\u2019s are allegedly essential in ensuring that the interests of all market participants, especially retail investors, remain in the spotlight.<\/span><\/p>\n <\/p>\n <\/p>\n Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114<\/a> and reach out to him at sunil (at) coingape.com <\/p><\/div>\n<\/p><\/div>\n\n
US SEC\u2019s History with Crypto ETF Approvals<\/b><\/h2>\n
Deaton\u2019s Stance on Regulator Bias<\/b><\/h2>\n
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