Hester Peirce, affectionately known as ‘crypto mom,’ has voiced her strong opinions following the approval of spot Bitcoin exchange-traded products by her agency, after a decade of rejections. “Today marks the end of an unnecessary, but consequential, saga,” she stated on January 10. Peirce suggested that the saga could have extended beyond a decade if not for the Grayscale court victory against the SEC last year.
Peirce, a pro-crypto politician, criticized the SEC for alienating a generation of product innovators within the crypto space. She accused the agency of “regulatory prejudice against new products and services,” a sentiment echoed by Coinbase CEO Brian Armstrong. Peirce also pointed out that the SEC subjected crypto ETPs to more scrutiny and higher standards than comparable commodity-based ETPs, which she believes has damaged the SEC’s reputation.
Furthermore, Peirce noted that resources were unnecessarily diverted to repeatedly analyze and reject Bitcoin ETPs over the years. This prolonged process also created an “artificial frenzy.” She stated, “Today’s order does not undo the many harms created by the disparate treatment of spot Bitcoin products.” Despite the approval of spot Bitcoin ETFs, Peirce will not be celebrating, but rather the “right of American investors to express their thoughts on Bitcoin by buying and selling spot Bitcoin ETPs.”
On the other hand, SEC Commissioner Caroline Crenshaw expressed a contrasting view. She voiced deep concerns about the approval of these products, fearing they will flood the markets and negatively impact the retirement accounts of U.S. households who can least afford to lose their savings to the fraud and manipulation prevalent in the spot Bitcoin markets. Crenshaw, who joined the SEC in 2013, also expressed concern over the lack of regulatory oversight for crypto markets, product confusion, and lack of investor protection. The SEC’s failure to protect investors was further highlighted when its social media account was hacked the day before the official announcement.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Caroline Crenshaw, Brian Armstrong, Hester Peirce |
| Companies | SEC, Binance Futures, Grayscale, Coinbase |
| Currencies | Bitcoin |
| Securities | None |
