As the bitcoin and crypto industry gears up for Bakkt, the US Securities and Exchange Commission (SEC) claims there is still work to be done. The primary concerns at the moment revolve around custody and price manipulation.
Bakkt Could Solve SEC Crypto Concerns
Speaking to CNBC’s The Exchange yesterday, SEC chairman Jay Clayton was asked if those in the industry have come closer to satisfying his concerns and those of the regulatory body. He replied positively stating that there is still work to be done for futures markets.
The first concern is regarding the custody of crypto assets. The regulator needs to be satisfied that any trading products offered to institutional investors also have the means to safely store the assets for their clients.
Clayton’s second concern was that crypto assets trade on largely unregulated exchanges. There needs to be some assurance that the prices quoted are not subject to manipulation. He added that progress was being made but those two questions need clearly defined answers before SEC can begin approving more 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) September 9, 2019
Bakkt has already answered the first question with the launch of its ‘Bakkt Warehouse’ which was announced yesterday. According to the release the New York State Department of Financial Services (NYDFS) regulated product provides customers with a Qualified Custodian of bitcoin.
The Intercontinental Exchange subsidiary added that it will create the first fully regulated physically delivered Bitcoin Futures contracts on September 23rd.