Securities and Exchange Commissioner (SEC) Hester Peirce expressed her continued support for the regulator to approve a bitcoin exchange-traded fund (ETF) during an appearance at an online conference, “The B Word “, Wednesday.
A bitcoin ETF in the United States would allow retail investors to gain exposure to bitcoin without going through the tedious processes of buying and securing the cryptocurrency.
While many commissioners are wary of the cryptocurrency market, Peirce has earned the title of “Crypto Mom” because of his belief that the United States has long had to approve a bitcoin ETF. In particular, it has won praise from the community for its strongly worded dissent to the rejected bitcoin ETF applications. This year, it also reintroduced a “Safe Haven” proposal, initially made in 2020, which would give crypto startups a three-year grace period to become decentralized and meet other criteria before they are fully subject to regulatory requirements. US securities laws. to drive innovation forward.
Asked today about the possibility of going ahead with a bitcoin ETF, Peirce cited Canada’s approval of a bitcoin and ether ETF as an example the United States could follow. In fact, several bitcoin and ether ETFs (Ethereum’s native currency) have been operating in Canada for several months.
“I never imagined that I would be in this situation where we wouldn’t have approved one yet and other countries are moving forward,” said Peirce.
Peirce also expressed concern that the crypto industry is being forced to follow a separate set of rules from anyone else and may be beyond its purview. “We’re not a merit regulator, so we shouldn’t be deciding whether something is good or bad, an investor thinks of their entire portfolio and sometimes we think in ad hoc terms of a particular product. all alone and we forget that people are building portfolios.
The SEC routinely rejected requests for the bitcoin ETF during the first crypto boom in 2017 and 2018, on the grounds that the market was susceptible to fraud and manipulation. However, since the sector has matured, developed regulated derivatives markets and created institutional grade depositories, which has led more professional investors to enter the space. Additionally, the SEC has a new chairman, Gary Gensler, who has spoken favorably about bitcoin in the past.
In light of the recent bull market, demands are picking up. However, to date, the SEC has delayed making a decision on all of the claims currently before it.
Additionally, with the recent drop in the price of bitcoin – it’s down nearly 50% from its all-time high of over $ 64,000 in April, the SEC may not feel the same sense of urgency as it does. few months ago.