The previous head of the U.S Securities and Exchange Commission Jay Clayton on Monday stated that approval of a Bitcoin (CRYPTO: BTC) ETF could be a "hard to resist" prospect, acknowledging the significant strides made in the digital asset space. He said that a well-defined regulatory framework could make the approval of an ETF more likely.

Recently, numerous leading financial firms have put forth spot Bitcoin ETF applications.

Some of the notable contenders in this group include industry giants BlackRock Inc (NYSE:BLK) and Fidelity, both of which lodged their applications within the past four weeks.

In a conversation with CNBC, he elaborated on the industry's evolution and explained why it would be challenging for the SEC to decline an ETF approval.

"When you see institutions that are experts in market knowledge stepping forward and vouching for it, that's truly noteworthy," stated Clayton.

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"What these institutions are contending is that the old distinctions are no longer applicable, and the spot product is now more efficient and less burdensome for investors," he added.

Despite his optimism, Clayton emphasized that the regulatory process is comprehensive and not to be rushed.

Although he acknowledged approval would require regulatory safeguards, he noted the SEC's ongoing work towards implementing such safeguards would be crucial.

Clayton was remembered in the crypto space for launching the 2020 lawsuit against Ripple (CRYPTO: XRP), a contentious legal action that is still in progress.

Since then, Clayton has adopted a more receptive approach to the industry and has even taken on an advisory role at Fireblocks, a company in the cryptocurrency space.

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