In a move that is aimed to put a positive spin on the Bitcoin ETF situation, European Union regulators have stated that they could reduce the regulatory pressure on cryptocurrencies if a Bitcoin ETF sees approval.
The European financial advisory group had earlier said that cryptocurrencies could be a threat to investors and the presence of market integrity. The report released states:
“These issues are not unique to crypto assets trading platforms; they may be exacerbated in the case of crypto-assets because of their high price volatility and often low liquidity.”
The report further asks local governments to not legalize cryptocurrencies because of their volatility and the fact that they are not financial instruments. At the same time, the body has also recommended a uniform way to regulate cryptocurrencies. There are several organizations that have taken a keen interest in the Bitcoin ETFs, with the main organization being the Winklevoss brothers-led Gemini exchange.
Recently, the Winklevoss had said that the Securities and Exchanges Commission of the USA was calling for more market surveillance and protections in the marketplace. Cameron Winklevoss had said:
“We understand the commission’s concerns. We’ve heard them loud and clear and they are basically calling for more market surveillance and protections in the marketplace to avoid, prevent against manipulative behaviour and stuff like that. So, Gemini has build a market surveillance team.”
The brothers also talked about the inception of the Virtual Commodity Association, a self-regulatory organization for the cryptocurrency industry in the United States. The Winklevoss brothers further added:
“We get commission being conservative on that, and that makes a lot of sense because this will be the first of many products of its kind. So, we’ve gotta get it right. So, we’re willing to accept the fact that we gotta do out homework.”
But at the same time, the Bitcoin ETF also has its critics, with the recent one being the CSO of CoinShares. Meltem Demirors, the CSO, had opined that the SEC will not approve the Bitcoin ETF. He said:
“I think people forget that the SEC and the CFTC are people appointed; these are political positions. And so in this current sort of stalemate where you have the Democratic House, and the Republican Senate, you see some clashing, there are very different views on financial innovation and what should happen but I think right now there is no upside to approving an ETF. [sic.]”
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