Lessons Learned from Approving Bitcoin ETFs, Says SEC Commissioner
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce emphasized that the lessons learned while approving spot Bitcoin ETFs would be taken into account for future decisions. In an interview with Coinage, Peirce acknowledged that the SEC had received feedback from a court regarding their approach, prompting a necessary reaction from SEC chair Gary Gensler.
No Drawn-Out Process for Future Crypto ETF Applications
While Peirce refrained from commenting on the status of spot Ethereum ETF applications, she expressed hope that future crypto ETF applications would not face lengthy legal battles. She emphasized the importance of consistency and avoiding arbitrary decision-making, stating that the regulator should apply similar considerations as they do for other products.
Focus on Facts and Disclosures
Peirce cautioned against making predictions about specific exchange-traded products, highlighting the significance of evaluating individual circumstances. She also emphasized the extensive effort required to prepare an exchange-traded product for market, including aligning disclosures with product functionality.
Crypto Markets Upheaval and Unauthorized Tweet
The approval of Bitcoin ETFs by the SEC was marred by confusion when a fake tweet, falsely claiming approval, was posted from the regulator’s compromised Twitter account. This caused significant disruption in the crypto markets, leading to a drop in Bitcoin’s price. Peirce criticized the regulator’s handling of the situation, describing it as problematic and emphasizing the attention generated around regulatory decisions.
Regulation and Individual Choice
Peirce reiterated her criticism of the SEC’s abuse of administrative procedures to restrict investment options available to the public. She highlighted that regulation should not overlook people’s freedom to make their own choices and decide whether to include certain products in their portfolios.
Hot Take: SEC Commissioner Emphasizes Lessons Learned from Bitcoin ETF Approvals
SEC Commissioner Hester Peirce underscores the importance of the lessons learned during the approval process for spot Bitcoin ETFs. While acknowledging feedback received from a court, Peirce stresses the need for consistency and avoiding arbitrary decision-making. She expresses hope for a smoother process for future crypto ETF applications, emphasizing the evaluation of individual circumstances and alignment of disclosures with product functionality. Peirce also criticizes the regulator’s handling of the unauthorized tweet incident, highlighting the attention generated around regulatory decisions. Ultimately, she advocates for preserving individual choice in investment options and allowing people to decide what products to include in their portfolios.
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