SEC Chairman Clayton: Risk of Manipulation Could Roadblock Bitcoin ETF

Recently, U.S. SEC Chairman Jay Clayton made an appearance at CoinDesk’s Consensus: Invest conference where he outlined risks associated with crypto trading. He said that the absence of necessary safeguards for investors may stop the Bitcoin ETF getting approved.
He pointed out, “How that [manipulation] issue gets addressed, I don’t have a particular path. But it needs to be addressed.”
“The prices retail investors are seeing are the prices they should rely on, and free from manipulation—not free from volatility, but free from manipulation,” Clayton added.
The SEC has denied multiple ETF applications over the last few months, pointing to fraud, market manipulation and concerns over investor protection, according to an article on CNBC. The applications didn’t get past article 6(b)(5) in the Securities Exchange Act.
On August 23, the SEC rejected nine proposed ETFs, but seemingly had some reservations and said reviews would be necessary.
Later, in October, the SEC invited public comments either in favor or against proposed Bitcoin ETFs, forming part of its decision-making process. This came as good news for people wanting to express their support.