Ripple CLO: SEC’s Legal Failures Led to Approval of Spot Bitcoin ETFs
After months of delays and uncertainty, the US Securities and Exchange Commission (SEC) has finally approved Spot Bitcoin ETFs. Ripple Chief Legal Officer (CLO) Stuart Alderoty believes that this decision was influenced by the regulator’s legal shortcomings in regulating the cryptocurrency industry.
Alderoty took to X (formerly Twitter) to proclaim that the approval of Spot Bitcoin ETFs by the SEC was a result of the agency’s recent legal failures. The regulatory agency announced its approval decision on Wednesday, January 10, meeting the deadline set for the SEC’s final ruling on Spot Bitcoin ETF authorization.
In response to a publication made by Commissioner Hester M. Pierce, Alderoty pointed out that the SEC has been recalcitrant in its efforts to regulate the crypto industry. The Ripple CLO stated that the SEC Chairman, Gary Gensler, has been in a “battle royale” against cryptocurrency for years, resulting in the SEC becoming a “caricature” of its own making.
US Commissioner Highlights SEC Shortcomings
Commissioner Pierce described the approval of Spot Bitcoin ETFs as an “unnecessary and consequential saga.” She acknowledged that the SEC’s previous denial of such ETFs has pushed retail investors to resort to less efficient methods to obtain Bitcoin exposure in the securities market.
Pierce strongly emphasized the adverse consequences of the SEC’s delay on Spot Bitcoin ETF applications. She revealed that the regulatory body had wasted 10 years of opportunities by denying them. Additionally, she stated that the regulator’s treatment of these applications has tarnished its reputation and led to misconceptions about its fundamental role among the public.
Furthermore, Pierce disclosed that the SEC’s previous delays created the present unwarranted hype around Spot Bitcoin ETFs and resulted in the estrangement of innovators in the space.
Hot Take: Ripple CLO and Commissioner Pierce Criticize SEC’s Approach
The approval of Spot Bitcoin ETFs by the SEC has sparked criticism from Ripple CLO Stuart Alderoty and Commissioner Hester M. Pierce. Both believe that the regulator’s previous legal failures and delays have influenced this decision.
Alderoty claims that SEC Chairman Gary Gensler has been against cryptocurrency for years, leading to the agency becoming a “caricature” of itself. Pierce highlights the adverse consequences of the SEC’s delay, including retail investors resorting to less efficient methods for Bitcoin exposure.
Both Alderoty and Pierce agree that the SEC’s actions have damaged its reputation and caused a loss of trust from the public, judges, and policymakers. This approval of Spot Bitcoin ETFs comes after years of anticipation and could mark a turning point in the SEC’s approach to regulating the cryptocurrency industry.
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