US SEC commissioner says Bitcoin ETF approval is long overdue – regulation Bitcoin News
According to SEC Commissioner Hester Peirce, the regulator should have approved a Bitcoin Exchange Traded Fund (ETF) in the US a long time ago. She stressed that it is not the SEC’s job to approve or deny requests on its own based on the merits of the underlying investment. “People should make their own decisions” on whether to buy Bitcoin, the commissioner said.
SEC commissioner wants Bitcoin ETF to be approved
A SEC commissioner, Hester Peirce, spoke in an interview with CNBC on Thursday about the SEC’s prospects for approving a Bitcoin Exchange Traded Fund (ETF). Peirce is also known in the crypto community as “crypto mom”.
The SEC has yet to approve a Bitcoin ETF. However, the industry hopes things will change this year as the SEC has a new chairman, Gary Gensler, who has taught crypto and blockchain courses at the Massachusetts Institute of Technology (MIT). Commissioner Peirce described:
I thought if we had applied our standards as we have applied them to other products, we would have already approved one or more of them. With every day that goes by, the rationale we used in the past for not being approved seems to be weakening.
The commissioner previously stated that she sees double standards at the SEC when it comes to Bitcoin products. She explained that the SEC is asking exchanges and potential Bitcoin ETF sponsors for more collateral than it requires for traditional, stock-based products.
“People with a regulatory mindset say, ‘Oh wait, the market for Bitcoin looks a little different from the markets we’re used to,'” said Peirce. It contradicted the SEC’s decision to reject a Bitcoin ETF application from the Winklevoss twins in 2018.
Peirce noted that the Bitcoin market now looks more like an established market with more institutional and established retail investors involved, Peirce noted:
I think the markets have matured quite a bit.
In May Peirce said: “We are seeing more institutional interest than in the past. I think this will continue … as people want to diversify their portfolios, I think people will probably look more at the crypto space too. “
Peirce is not alone. Investment banks and fund managers are seeing the same trend, and a growing number of them have started investing in Bitcoin or offering crypto services to their clients, including Goldman Sachs, Morgan Stanley and Citigroup.
The commissioner stressed that it is not the job of the SEC to approve or deny requests based on the merits of the underlying asset itself, especially when exchanges meet legal requirements to protect investors from fraud.
Indication that “Bitcoin is so decentralized now. The number of nodes involved in Bitcoin is large and the number of people who have an interest in keeping this work decentralized is very large, ”concluded Commissioner Peirce:
People should make their own decisions: If people don’t want to buy Bitcoin because they think it’s tampered with, they shouldn’t buy Bitcoin.
Do you think the SEC will finally approve a Bitcoin ETF this year? Let us know in the comment section below.
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