Hester Peirce, the SEC commissioner, has called on the agency not to hold back in endorsing new emerging crypto products like Bitcoin ETFs because of the perceived weakness of the crypto markets.
Peirce: Comprehensive Regulation Not Necessary
Peirce believes the crypto market shouldn’t be subject to extensive government regulation as a precondition to allowing products rade in markets the agency regulates.
Pierce is one of the few pro-crypto talking heads at the SEC. She said that the rejection of the Winklevoss brothers Bitcoin ETF proposal was a result of the SEC’s belief that Bitcoin markets have flaws that relate to its infrastructure.
Through a letter of dissent, she explicitly described how the SEC justified the rejection of the Winklevoss bitcoin ETF. According to her, the decision was not based on evaluating Bitcoin and the blockchain technology as a viable innovation and investment.
She believes the rejection was more focused on the crypto markets instead.
“The Commission’s order included an assurance that the ‘disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment.’ The order, however, seemed to do almost that. It focused on the alleged flaws with bitcoin markets, rather than on whether the exchange proposing to trade shares of the trust had taken steps to ensure the orderly trading of those shares.”
Peirce believes if the SEC continues to focus on crypto markets rather than the products or the instruments launched on top of the markets, then publicly tradeable instruments associated with cryptos will never hit the US market.
She added that these new products are a result of innovative entrepreneurs who are trying to develop products that are accessible to a diverse pool of investors. As the crypto market stands, its complex in that only a specific type of investor can pursue the diversification opportunities these assets provide.
For this reason, the SEC should be willing to embrace these products that allow people to access crypto indirectly or hedge their crypto holdings.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology