Tom Farley, the former president of the New York Stock Exchange (NYSE) and current CEO of Bullish, a crypto exchange platform, has shared his insights on the future of the cryptocurrency industry, specifically Bitcoin. His views were aired in a recent interview with CNBC Television.
Farley proposed that the approval of Bitcoin exchange-traded funds (ETFs) could lead to a massive influx of cash into the crypto sector. However, he tempered his optimism with a dose of reality, expressing doubt that such approval would happen by the end of the year.
He pointed out that the current Chairman and the SEC (U.S. Securities and Exchange Commission) view nearly all crypto assets, with the exceptions of Bitcoin, Ethereum, and possibly some stablecoins, as securities. Farley highlighted the regulatory hurdle that securities, at least in the United States, must trade on a nationally-recognized exchange which isn’t currently the case for many cryptocurrencies.
His comments reflect the wider industry’s thoughts and concerns about the opaque nature of cryptocurrency pricing without a recognized exchange for trading. He said,
If these don’t trade on an exchange, how do we know that the underlying prices are trustworthy?
Despite these concerns, Farley also expressed his optimism about Bitcoin. According to him, the fact that regulators and investors unanimously agree that Bitcoin isn’t a security could potentially fast-track the approval process of a Bitcoin ETF.
Farley firmly believes that Bitcoin’s status as a non-security will be beneficial for the industry as it will expedite the approval of a Bitcoin ETF. He explained, “The thing about Bitcoin that gives me some optimism is that everyone acknowledges Bitcoin is not a security.” He continued to add that it would lead to a significant influx of funds into the industry.
Farley further emphasized the widespread belief in Bitcoin’s enduring value despite its inherent volatility, terming it as a great invention and a reliable store of value.
Even though he expressed some skepticism about an immediate approval of a Bitcoin ETF, he made it clear that Bitcoin will continue to exist and thrive. He said,
People believe in Bitcoin, Bitcoin is going to be here, Bitcoin is a great invention.
Farley’s comments come amid increasing speculation around the approval of a spot Bitcoin ETF. If approved in the U.S., it would be the first such product in the country, potentially attracting significant institutional capital to the sector.