Bitcoin won’t be trading on the public exchanges just yet.
Jay Clayton, Chairman of the Securities and Exchange Commission, that’s who. In speaking at the recent Delivering Alpha conference co-hosted by CNBC and Institutional Investor, Clayton said that until there is better regulation over the nascent crypto markets don’t expect any exchange-based trading. Until that happens, investors can continue to expect volatile price swings and liquidity issues.
With a market cap of approximately $177 billion, Bitcoin has seen a number of attempts to go mainstream, including using it to back ETFs that could attract not just retail but institutional investors.
Bitcoin currently trades around $8,240, up around 19% over the past year but off 40% from its all-time high just above $20,000, according to Coinbase quotes.
“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. “We have to get to a place where we can be confident that trading is better regulated.”