SEC Official Criticizes Delay in Bitcoin ETF Approval
Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), believes that the delay in approving a spot Bitcoin exchange-traded fund (ETF) is a wasted opportunity. In an interview, Peirce stated that the SEC should reflect on the mistakes made during the approval process.
Peirce argues that if a product meets the necessary standards, it should not matter whether the regulator likes the underlying asset. She emphasizes that ETFs offer investors access to a wide range of assets, making it easier for them to include those assets in their portfolios. Peirce believes that the hesitation in approving Bitcoin ETFs is due to fear of the unknown.
Last week, the SEC approved 11 spot Bitcoin ETFs after years of rejecting applications. However, Bitcoin futures ETFs were approved in 2021.
Hot Take: Overcoming Fear to Embrace Innovation
Hester Peirce’s criticism of the delayed approval of a spot Bitcoin ETF highlights the need for regulators to overcome their fear of new and unfamiliar technologies. By focusing on whether a product meets regulatory standards rather than personal preferences, regulators can foster innovation and provide investors with more diverse investment options. Embracing new asset classes like cryptocurrencies through ETFs can make it easier for people to engage with these assets within traditional investment frameworks. It is crucial for regulators to adapt and embrace change to support technological advancements in finance.
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