Securities and Exchange Commission Chairman Jay Clayton said Thursday that bitcoin will need to be more regulated before it can be traded on any major exchange, CNBC reports. Clayton made the remarks at the Delivering Alpha conference, where he was the featured opening speaker.
Clayton also cautioned investors to be wary of the digital currency until it’s properly regulated, and cited concerns about issues like price discovery:
“If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or New York Stock Exchange ... they are sorely mistaken,” said Clayton, the opening speaker at the Delivering Alpha conference, presented by CNBC and Institutional Investor. “We have to get to a place where we can be confident that trading is better regulated.”
While the Chicago Mercantile Exchange added bitcoin futures contract trading to its exchange, the actual digital currency had yet to be made available for trading on traditional exchanges. As CNBC notes, efforts to provide retail investors easier access to digital currency trading by launching bitcoin exchange-traded-funds have been rejected by regulators, who remain skeptical about the industry’s overall stability.