Wall Street Journal Reporter Claims SEC will Shut Down BTC ETF Due to Lack of Transparency

CNBC conducted an interview with Wall Street Journal reporter Paul Vigna, On August 27, where the discussion focused on the state of cryptocurrencies including Bitcoin. Vigna detailed the Securities and Exchange Commission’s [SEC] position on approving the Bitcoin [BTC] ETF proposal during the interview.

The journalist stated that the SEC’s worries about the cryptocurrency market are sound, because despite the benefits of having a public transaction ledger where the prices and transactions are recorded, there is still a lack of transparency concerning the transactions or the reason behind them.

Vigna went on to compare the crypto ecosystem with traditional capital markets that are continuously monitored by regulators. The exchanges also self-monitor frequently in order risk exposure, watch the market for anomalies, or be aware of market manipulation.

He stated:
“The cryptocurrency markets are far more dangerous as there is no transparency or insight into the reason behind all the transactions. There are many instances where market manipulation has been witnessed in Bitcoin and other cryptocurrencies and nobody is clear about the extent to which it is still happening.”

The SEC now has the task of determining the extent, the process, and the reasoning behind the manipulation in the crypto market, and because of the lack of understanding it would be foolish to allow a BTC ETFs as it would lead to opening up retail markets which could be problematic down the road.

In the interview Vigna, was asked about the concerns of individuals who felt that without the support of Central Banks the SEC did not recognize the ETF.
Vigna replied:
“The whole idea which existed a few years ago where the governments would not have approved such projects is not so relevant in the present and any good government will look at it as something with great potential and would help individuals benefit from it.”