A former official at the U.S. Securities and Exchange Commission (SEC) has said that the long-sought after approval of a Bitcoin exchange-traded fund (ETF) does not appear likely soon, and may not occur until after the 2024 presidential election, according to a report from Decrypt.
The official, who wished to remain anonymous, was reportedly heavily involved with the Financial Industry Regulatory Authority (FINRA) and the SEC’s work with cryptocurrency and blockchain technology.
According to the official, the current approach of the SEC to cryptocurrencies is one of caution. The official believes that the main barrier to ETF approval is the lack of a “lawful pathway” for the funds to gain approval from the SEC.
The official noted that the SEC is focused on consumer protection, and will require cryptocurrency funds to pass a battery of tests in order to be approved. The official added that an ETF could technically be approved sooner than 2024, but only if the proposal meets the SEC’s rigorous requirements.
The official’s comments come as many investors have been looking forward to the potential of a Bitcoin ETF for years now. The SEC has denied multiple ETF applications in the past, citing concerns over market manipulation and consumer protection.