The Bitcoin and crypto-industry is preparing to Bakkt, while the US Securities and Exchange Commission (SEC) claims that there is still some work to do. At the Moment, the main focus of the American stock exchange turns authority aufischt on the custody and the issue of price manipulation.
Bakkt could crypto-secondary-solve problems
In conversation with CNBC’s The Exchange, the SEC Chairman Jay Clayton was asked whether the crypto-industry representatives came to his concerns and those of the regulatory authority a step closer. He answered positively and stated that still a lot of work for the futures markets is.
The first concern relates to the safekeeping (Custody) of crypto-Assets. The Supervisory authority must ensure that all commercial products, which are offered to institutional investors, have the resources, the assets, store values for your customers.
Clayton’s second concern was that crypto-Assets are traded in largely unregulated exchanges. It must be given a certain amount of security to ensure that the prices offered are not rigged. He added that progress has been made, but these two issues still clearly need to be answered before the SEC could begin with the admission of crypto-related products.
Are we any closer to seeing a Bitcoin ETF some day? SEC Chairman Jay Clayton to @CNBC: “yes, but there’s work left to be done” @SEC_News @bobpisani @kellycnbc @CNBCTheExchange #bitcoin #crypto pic.twitter.com/iJP3nn9XHc
— The Exchange (@CNBCTheExchange) 9. September 2019
For the first problem question Bakkt already has yesterday announced the opening of his “Bakkt Warehouse” an officially imported solution. The subsidiary of the Intercontinental Exchange added that on 23. September is to create the first fully regulated Bitcoin Futures contracts with physical delivery. The first major concern of the U.S. is, at least, to satisfy regulatory authorities, as the Depositary Bank is supported by an insurance policy of over $ 125 million.
The Problem of crypto-price-Manipulation is more difficult to solve. As with any asset, supply and demand determine the price movements, and in the case of Bitcoin is no different. In the last few weeks, countries like China, where the demand due to escalating economic tensions and a weakening of the local currency has risen high price premiums.
To avoid this, would have to relate to each institutional product prices of a regulated stock market within the country. In the case of new ETFs this would be likely to Coinbase* or Gemini.
The scene in the year 2019 is significantly different from the in the year 2017. Today, it is open to new asset classes and other products are likely to come in the coming months on the market.
Text evidence: bitcoinis, MARTIN YOUNG