Pro-XRP lawyer John E Deaton has responded to the recent decision by the U.S. Securities and Exchange Commission (SEC) to postpone the approval of a Bitcoin exchange-traded fund (ETF) by global asset manager BlackRock.
Deaton has raised concerns about regulators prioritizing institutional interests over retail access, referring to former SEC Chairman Jay Clayton’s statements. Clayton acknowledged the demand for Bitcoin access from both retail and institutional investors but questioned whether the cash trading market could be easily manipulated, potentially limiting retail access.
However, the situation may be changing as large financial institutions introduce surveillance mechanisms to ensure the legitimacy of the cash market. Deaton expressed frustration, suggesting that regulators in the U.S. may be biased in favor of entities like BlackRock under the guise of investor protection. He believes that by delaying decisions, regulators may manipulate crypto prices to benefit these established players.
Clayton highlighted the difference between Bitcoin futures and cash products, implying that this distinction may not be sustainable in the long term. Despite the delay, Clayton remains optimistic and considers the 45-day window for reconsideration as insignificant in the broader context.
The tension between regulatory caution and market demand for Bitcoin ETFs continues to shape the landscape, with voices like Deaton’s advocating for the interests of all market participants, particularly retail investors.