According to BitGo CEO Mike Belshe, the US Securities and Exchange Commission (SEC) will most likely continue to deny the launch of spot cryptocurrency ETFs.
Mike Belshe substantiates his opinion with the business structure of the largest American exchange Coinbase. The fact is that Coinbase does not separate the merchant services business from the custodial business.. And in a large number of applications for spot ETFs, it is the American exchange that is listed as a partner for storing digital assets.
“There are many risks in setting up the Coinbase business that we don't understand.. There is a high probability that the SEC will refuse to approve applications until these services are completely separated,” said Mike Belshe.
Indeed, one of the main arguments of SEC representatives in past refusals to approve applications for ETFs was precisely the risks of market manipulation and the lack of investor protection in the current organization of asset storage.
Earlier, Shark Tank host Kevin O'Leary suggested that the US SEC may need another year and a half to approve a spot Bitcoin ETF.. To do this, you need a crypto exchange that fully complies with SEC requirements.