The U.S. Securities and Exchange Commission (SEC) ultimately Spot Bitcoin Exchange Traded Fund (ETF) Wednesday was as expected, but at least one SEC commissioner wasn't mincing words about the damage the long wait has caused the agency, investors and the crypto industry.
SEC Commissioner Hester Pierce is a longtime cryptocurrency advocate Commonly known as “Cryptomum” by fans, released her statement Regarding Wednesday's actions. This followed a statement from SEC Chairman Gary Gensler. The tone became more somber. About the long-awaited Bitcoin ETF approved.
“Today brings an end to an unnecessary but consequential saga,” Peirce said, noting that the first application for a Spot Bitcoin ETF was filed in the United States more than a decade ago. It was written. She said the question of why a spot Bitcoin Exchange Traded Product (ETP) is needed has surfaced regularly over her six years at the agency.
“The logic of this long series of denials is perplexing, for reasons I have explained many times before,” she wrote. “It was impossible to predict the approval timeline for Spot Bitcoin ETPs because the review process for these applications was not similar to the fairly straightforward process for approving comparable ETPs. The goalposts continued to move as applications received “rejection” one after another. ”
Peirce said the SEC's lack of proactive action “has led individual investors to inefficient means of gaining Bitcoin exposure in the securities markets,” adding, “Rather than admitting a mistake, [the SEC] The change of heart is poorly explained. ”
“We wasted a decade of opportunity to do the work,” she wrote. “If we had applied the standards we use for other commodity-based ETPs, we could have approved these products years ago, but we refuse to do so until a court recognizes our bluff.” Did.”
The SEC's decision to finally approve the Spot Bitcoin ETF follows a U.S. Court of Appeals ruling against a D.C. Circuit judge. ruled in august The government agency is reviewing an application by virtual currency company Grayscale to make changes to its cryptocurrency. bitcoin trust To a real ETF. The judge wrote that without a “coherent explanation” as to why the Spot Bitcoin ETF was being rejected, such a rejection would appear to be “unlawful.”
Mr. Gensler referred to the court's ruling. his own statementAlthough the latest Bitcoin ETF application is similar to previous attempts, “things have changed,” he wrote.
Gensler continued, “Given these circumstances, and those more fully discussed in the approval order, the most sustainable path forward is to approve the listing and trading of these Spot Bitcoin ETP shares. I feel that way,” he continued.
Points of perspective
Despite Wednesday's approval, “this order does not undo much of the harm caused by the disparate treatment of spot Bitcoin products,” Peirce speculated, adding that the SEC's staunch anti-virtualization of Bitcoin She delves into a number of specific problems that she believes are caused by the monetary approach. Past 10 years.
“First, our arbitrary and capricious treatment of applications in this space will continue to damage our reputation far beyond cryptocurrencies,” she explained. “A decline in public trust inhibits our ability to effectively regulate our markets. Stories like this taint future interactions between the industry and our staff, and we are unable to ensure that investors are best protected.” It would undermine a rich and useful dialogue.”
Peirce also noted that over the years, “probably millions of dollars of staff time have been spent blocking these applications,” which he considers a waste of resources. He also said that over that period of time, it has “confusing people's understanding of what the SEC's role is.”
“Congress doesn't give us the power to tell people whether a particular investment is right for them. But we've abused the administrative process to withhold investments we don't like from people.” she said.
Additionally, Peirce believes the SEC's actions have “created an artificial frenzy” around Bitcoin ETFs, arguing that if the regulator had followed its own rules, it would have been “like the circus we're in now.” I think this atmosphere could have been avoided.”
She also believes the SEC has “shunned generations of product innovators within our space” and lamented the “costly legal battles” that ultimately led to the approval of the Spot Bitcoin ETF. .
“This is a time of reflection, but it's also a time of celebration. I'm not celebrating Bitcoin or Bitcoin-related products. What some regulators think about Bitcoin is irrelevant,” she said. added. “I applaud the right of American investors to express their thoughts on Bitcoin by buying and selling Spot Bitcoin ETPs.”
“And I would like to commend market participants for their perseverance in trying to bring products to market that they think investors want,” Peirce continued. “I commend the applicant's ten years of tenacity despite the European Commission's obstruction.”
Edited by Ryan Ozawa.
Show alert: Please pay attention to Lagradio's FOMO Hour On Thursdays at 10:30 a.m. ET, you can hear Decrypt's Stacy Elliott and Fox Business' Eleanor Terrett talk all things Bitcoin ETFs with Farokh Sarmad, Michael Anderson, and Ovie Faruq.
