The maturation of the digital-currency market continues to face headwinds as the standoff between regulators and proponents rolls on.
In an open letter to the Securities and Exchange Commission, Chris Concannon, president and COO of Cboe Global Markets, laid out a case for a bitcoin
exchange-traded products, citing data and projections that it hopes will alleviate concerns regulators have with such a product.
“While Cboe shares many of the concerns raised in the Staff Letter, we believe that the vast majority of these concerns can be addressed within the existing framework for commodity-related funds related to valuation, liquidity, custody, arbitrage, and manipulation,” wrote Concannon.
Read: SEC shoots down idea of bitcoin ETFs, citing volatility
‘Cboe encourages the Commission to approach Cryptocurrency ETPs holistically and from the same perspective that it has historically approached commodity-related ETPs’
The letter is just another chapter in the continuing debate around digital-currency adoption.
The Cboe letter is in response to a Jan. 18 release from SEC director Dalia Blass who said the regulatory body has issues with a product that lacks transparency, has the potential for manipulation and creates an uneven playing field.
“Until the questions identified above can be addressed satisfactorily, we do not believe that it is appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products,” the SEC release said.
In its letter, the Cboe said, among other things, that it expects bitcoin futures volumes to be comparable to that of other commodity futures products.
Read: Crypto bull John McAfee says SEC is striking out ‘in panic’ at digital currencies