ABRA CEO: SEC DENIES BITCOIN ETFS BECAUSE APPLICANTS DO NOT FIT INDUSTRY ARCHETYPE

Last updated: June 19, 2025, 18:18 | Written by: Marc Andreessen

The quest for a Bitcoin ETF (Exchange Traded Fund) in the United States has been a long and often frustrating journey for crypto enthusiasts.The U.S.Securities and Exchange Commission (SEC) has consistently rejected or delayed applications, leaving many wondering why.According to Bill Barhydt, the CEO of crypto payment startup Abra, the reason lies in the fact that the crypto industry, and particularly those applying for these ETFs, simply don't fit the mold of the traditional financial entities that the SEC is accustomed to dealing with. The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4.This isn't just about technology; it's about trust, regulatory compliance, and the establishment of a secure and reliable framework. The reason the U.S. Security and Exchange Commission has insofar denied crypto exchange traded funds is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4.Barhydt's insights, shared in a recent CNBC interview, shed light on the SEC's perspective and offer a glimpse into the potential future of Bitcoin ETFs. The CEO of Crypto payment firm Abra said that the SEC rejects BTC ETFs because people who are doing the applications don't fit mold of who the SEC is used to approving. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.Understanding this perspective is crucial for anyone invested in or following the development of the cryptocurrency market, as the approval of a Bitcoin ETF could potentially unlock significant institutional investment and mainstream adoption.The SEC's hesitation underscores the challenges of integrating this innovative technology into the established financial system, highlighting the need for applicants to demonstrate a deep understanding of regulatory expectations and a commitment to investor protection. The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds (ETFs) is because the crypto industry does not fit Facebook Instagram Mail Pinterest Reddit RSS Telegram Twitter YoutubeIs it possible that the SEC's standard is just too high for this novel new industry? The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds (ETFs) is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4. Speaking in an interview with CNBC s The Coin Rush, Bill Barhydt suggested that the [ ]Or are applicants unprepared?Let’s find out.

Understanding the SEC's Perspective on Bitcoin ETFs

The SEC's primary mission is to protect investors.This involves ensuring that any investment product offered to the public is transparent, secure, and unlikely to be manipulated.When it comes to Bitcoin ETFs, the SEC has consistently raised concerns about the potential for fraud and manipulation in the underlying Bitcoin market. Bill Barhydt, the CEO of Bitcoin payment processor, Abra, explained to CNBC that the SEC has been slow to approve any Bitcoin ETFs due to the applications not fitting the financial model that the SEC is used to.These concerns stem from the relatively unregulated nature of cryptocurrency exchanges and the potential for large players to influence the price of Bitcoin.

Barhydt's assertion that applicants don't fit the ""industry archetype"" suggests that the SEC is looking for applicants with a proven track record in traditional finance, a strong understanding of regulatory compliance, and the ability to demonstrate robust security measures.In other words, they are not only assessing the asset, but also the people who are trying to manage it.

Consider this analogy: Imagine you are applying for a loan.The bank doesn't just look at your idea; they look at your credit history, your experience managing finances, and your ability to repay the loan. 2.2K subscribers in the cryptoall community. cryptoallSimilarly, the SEC is scrutinizing the applicants for Bitcoin ETFs to ensure they have the experience, resources, and commitment to protect investors.

Why the Crypto Industry Struggles to Meet SEC Standards

The crypto industry is relatively new and characterized by rapid innovation and a decentralized ethos.This contrasts sharply with the highly regulated and centralized world of traditional finance. The founder of Bitcoin payment startup Abra, Bill Barhydt has stated that he believes that a bitcoin ETF will be approved within a year, as long as the SEC feels sufficiently comfortable with theSeveral factors contribute to the challenges faced by crypto companies in meeting SEC standards:

Lack of Regulatory Clarity: The regulatory landscape for cryptocurrencies is still evolving. The CEO of Crypto payment firm Abra said that the SEC rejects BTC ETFs because people who are doing the applications don't fit mold of who the SEC is used to approving. 0 NEWSThis lack of clarity makes it difficult for companies to ensure full compliance with existing regulations.
Security Concerns: Cryptocurrency exchanges and wallets have been targeted by hackers, resulting in significant losses for investors. 5.8M subscribers in the Bitcoin community. Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. UnlikeThe SEC is concerned about the security of the underlying Bitcoin market and the potential for theft or manipulation.
Price Volatility: Bitcoin's price is notoriously volatile, making it a risky asset for retail investors.The SEC wants to ensure that investors understand the risks associated with investing in a Bitcoin ETF.
Novelty of the Technology: The underlying technology of Bitcoin and other cryptocurrencies is complex and not well understood by the general public.This makes it difficult for the SEC to assess the risks and benefits of a Bitcoin ETF.

Overcoming the Archetype Gap

So, how can the crypto industry bridge the gap and meet the SEC's expectations? The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds (ETFs) is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4.Several strategies can be employed:

Strengthening Regulatory Compliance: Crypto companies need to invest in robust compliance programs and work closely with regulators to ensure they are meeting all applicable requirements. The CEO of Crypto payment firm Abra said that the SEC rejects BTC ETFs because people who are doing the applications don't fit mold of who the SEC is used to approving. The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds (ETFs) is because the crypto industry does MoreThis includes implementing strong anti-money laundering (AML) and know-your-customer (KYC) procedures.
Improving Security Measures: Enhancing the security of cryptocurrency exchanges and wallets is crucial for protecting investors. The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds (ETFs) is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4.Speaking in an interview with CNBC rsquo;s ldquo;The Coin Rush, rdquo; Bill BarhydtThis includes implementing multi-factor authentication, cold storage solutions, and regular security audits.
Increasing Transparency: Providing greater transparency into the operations of cryptocurrency exchanges and the underlying Bitcoin market can help alleviate the SEC's concerns about manipulation.This includes disclosing trading volumes, order book data, and custody arrangements.
Educating Investors: Educating investors about the risks and benefits of Bitcoin and other cryptocurrencies is essential for ensuring they make informed investment decisions.This includes providing clear and concise information about the volatility of Bitcoin, the potential for fraud, and the regulatory risks.

The Potential Impact of a Bitcoin ETF Approval

The approval of a Bitcoin ETF would have a significant impact on the cryptocurrency market. Skip to main content Bitcoin Insider. MenuIt would provide a regulated and accessible way for institutional investors and retail investors to gain exposure to Bitcoin without having to directly purchase and store the cryptocurrency.This could lead to a significant increase in demand for Bitcoin and potentially drive up its price.

Moreover, a Bitcoin ETF would legitimize Bitcoin as an asset class and increase its acceptance among mainstream investors.It would also provide a benchmark for the price of Bitcoin and make it easier for investors to track its performance.

However, it's important to remember that the approval of a Bitcoin ETF is not a guarantee of success.The ETF would still be subject to market risks and the volatility of Bitcoin. Business, Economics, and Finance. GameStop Moderna Pfizer Johnson Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. CryptoInvestors should carefully consider their risk tolerance and investment objectives before investing in a Bitcoin ETF.

Barhydt's Optimistic Outlook

Despite the SEC's past rejections, Barhydt remains optimistic about the future of Bitcoin ETFs.He believes that the SEC will eventually approve a Bitcoin ETF as the crypto industry matures and applicants demonstrate a stronger understanding of regulatory expectations. Abra CEO Bill Barhydt suggested that the SEC has denied crypto ETFs because people who are doing the applications don't fit mold of who the SEC is used to approving from Cointelegraph.com NewsHe even suggested a timeline of within one year, as long as the SEC is sufficiently comfortable.

Barhydt's optimism is based on the growing institutional interest in Bitcoin and the increasing sophistication of the crypto industry.He believes that as more traditional financial institutions enter the crypto space, the SEC will become more comfortable with the idea of a Bitcoin ETF.

Furthermore, Barhydt points to the increasing regulatory clarity surrounding cryptocurrencies in other countries as a positive sign. According to CNBC s September 4 report, Bill Barhydt, chief executive of Bitcoin remittance App Abra, said the US Securities and Exchange Commission (SEC) rejected and postponed severalAs more countries develop comprehensive regulatory frameworks for cryptocurrencies, the SEC may feel more pressure to approve a Bitcoin ETF in the United States.

What Happens Next?

The future of Bitcoin ETFs remains uncertain, but several potential catalysts could lead to their approval:

Increased Regulatory Clarity: As governments around the world develop clearer regulations for cryptocurrencies, the SEC may become more comfortable with the idea of a Bitcoin ETF.
Improved Security Measures: Enhancements to the security of cryptocurrency exchanges and wallets could alleviate the SEC's concerns about theft and manipulation.
More Experienced Applicants: As more traditional financial institutions enter the crypto space, the SEC may find applicants who better fit its ""industry archetype.""
Political Pressure: Increased political pressure from lawmakers and industry advocates could encourage the SEC to reconsider its stance on Bitcoin ETFs.

Ultimately, the approval of a Bitcoin ETF will depend on the SEC's assessment of the risks and benefits of such a product. Abra CEO: SEC Denies Bitcoin ETFs Because Applicants Do Not Fit Industry Archetype. Open in AppThe SEC will need to be convinced that a Bitcoin ETF can be offered in a safe and transparent manner that protects investors.

The Role of Education and Awareness

A significant factor in the SEC's decision-making process is the level of public understanding and awareness surrounding Bitcoin and cryptocurrencies.Increased education and awareness can help alleviate some of the SEC's concerns about investor protection.Several initiatives can contribute to this:

Educational Resources: Providing accessible and unbiased educational resources about Bitcoin and cryptocurrencies can help investors make informed decisions.
Industry Collaboration: Collaboration between crypto companies and regulators can foster a better understanding of the technology and its potential benefits and risks.
Media Coverage: Accurate and responsible media coverage can help dispel misconceptions about Bitcoin and cryptocurrencies and promote a more balanced understanding of the industry.

Addressing Common Misconceptions

Many misconceptions surround Bitcoin and cryptocurrencies, contributing to the SEC's hesitancy.Addressing these misconceptions is crucial for building trust and paving the way for Bitcoin ETF approval.Here are a few common misconceptions and their clarifications:

Misconception: Bitcoin is used primarily for illegal activities.
Clarification: While Bitcoin has been used for illicit purposes, studies have shown that the vast majority of Bitcoin transactions are legitimate.Furthermore, the traceability of Bitcoin transactions makes it less attractive for illegal activities compared to traditional cash.
Misconception: Bitcoin is a Ponzi scheme.
Clarification: Bitcoin is a decentralized digital currency with a limited supply.Its value is determined by supply and demand, similar to other assets like gold.While there are risks associated with investing in Bitcoin, it is not inherently a Ponzi scheme.
Misconception: Bitcoin is too volatile for mainstream investment.
Clarification: Bitcoin's volatility has decreased over time as the market has matured.While it is still a volatile asset, it is becoming increasingly accepted by institutional investors and is viewed as a potential hedge against inflation.

The Importance of Secure Custody Solutions

One of the SEC's major concerns regarding Bitcoin ETFs is the security of the underlying Bitcoin assets.Secure custody solutions are essential for protecting investors from theft or loss.Several types of custody solutions are available, each with its own advantages and disadvantages:

Cold Storage: Storing Bitcoin offline in a secure location, away from potential hacking attempts.This is generally considered the most secure method of custody.
Multi-Signature Wallets: Requiring multiple approvals for transactions, reducing the risk of unauthorized access.
Qualified Custodians: Using regulated custodians that meet specific security and compliance standards.

Choosing the right custody solution is crucial for any company applying for a Bitcoin ETF.The SEC will likely scrutinize the applicant's custody arrangements to ensure that the Bitcoin assets are adequately protected.

The Global Perspective on Bitcoin ETFs

While the SEC has been hesitant to approve Bitcoin ETFs in the United States, other countries have already approved similar products.Canada, for example, has approved several Bitcoin ETFs, providing investors with a regulated and accessible way to gain exposure to Bitcoin.Europe also has seen increased adoption of exchange-traded products that offer exposure to cryptocurrencies.

The experience of other countries can provide valuable insights for the SEC as it considers future Bitcoin ETF applications.By studying the regulatory frameworks and market dynamics in countries that have already approved Bitcoin ETFs, the SEC can better assess the risks and benefits of such products.

The Future of Crypto Regulation

The future of crypto regulation is uncertain, but it is clear that governments around the world are taking a closer look at the industry.As the crypto market continues to grow and evolve, regulations will likely become more comprehensive and sophisticated.

The development of clear and consistent regulations is essential for fostering innovation and protecting investors.It will also help to legitimize the crypto industry and pave the way for wider adoption.While the Abra CEO believes the SEC has been slow to approve any Bitcoin ETFs due to the applications not fitting the financial model that the SEC is used to, the future looks hopeful.

Conclusion: Bridging the Gap for Bitcoin ETF Approval

The SEC's reluctance to approve Bitcoin ETFs stems from valid concerns about investor protection and market integrity.As Bill Barhydt, the CEO of Abra, suggests, the crypto industry needs to bridge the gap between its innovative spirit and the SEC's stringent regulatory expectations.This requires a commitment to robust compliance programs, enhanced security measures, and greater transparency.By addressing the SEC's concerns and demonstrating a willingness to work within the existing regulatory framework, the crypto industry can increase the likelihood of Bitcoin ETF approval.A successful application hinges on not only the soundness of the underlying asset but also the credibility and experience of the applicant themselves.Until then, the industry must continue to refine its approach, educate regulators, and prioritize investor protection to unlock the potential benefits of a Bitcoin ETF for the broader market.The key takeaway here is that the issue isn’t necessarily with Bitcoin itself, but with the credibility and experience of the applicants.So, what do you think?Will the SEC give a BTC ETF the green light anytime soon?