U.S. SEC Commissioner Hester Peirce Slams Agency for Delay in Approving Spot Bitcoin ETFs
Securities and Exchange Commission (SEC) Commissioner Hester Peirce has strongly criticized her agency for the prolonged delay in approving spot bitcoin exchange-traded funds (ETFs). In a statement, Peirce expressed concern that the arbitrary and capricious treatment of ETF applications in this area will not only harm the reputation of the SEC but also hinder its ability to effectively regulate the markets. She emphasized that the lack of trust from the public will have far-reaching consequences beyond the realm of cryptocurrencies.
Diminished Trust and Its Impact on Market Regulation
Hester Peirce, a commissioner at the SEC, released a statement following the approval of 11 spot bitcoin ETFs by the agency. She acknowledged the end of a long and unnecessary saga that lasted for over a decade. Peirce highlighted the Commission's approval of multiple applications by exchanges for listing and trading of spot bitcoin ETFs. Had it not been for external factors, such as the DC Circuit, the process could have spanned even longer.
Peirce pointed out that Bitcoin-based products have been trading for years under different regulatory regimes. She believed that the SEC should have taken comfort in the successful launch and smooth trading of these products, even during times of market stress and volatility. However, the Commission remained steadfast in its reluctance to allow spot bitcoin ETFs in the US markets. As a result, retail investors were forced to seek bitcoin exposure through less efficient means in the securities markets.
Spot vs Futures-Based Products
One of the alternatives available to retail investors was bitcoin futures exchange-traded funds, which the Commission had no issue approving. Peirce noted that these futures-based products are more complex and harder to manage compared to spot products. This complexity often translates into higher costs for investors. However, the SEC persisted in denying spot bitcoin ETFs until a court intervention exposed the flaws in their decision-making process.
Peirce criticized the Commission for offering a weak explanation for its change of heart. In the past, the SEC rejected ETF applications based on concerns about the immaturity of the bitcoin market and potential manipulation. She stated that the Commission wasted valuable opportunities to do its job effectively and should have approved these products years ago. The SEC's insistence on a correlation test for spot bitcoin ETFs, which was not required for prior commodity-based ETFs, demonstrates their reluctance to fully embrace these products.
The Long-Term Consequences
Commissioner Peirce believes that the recent approval of spot bitcoin ETFs does not undo the damage caused by the disparate treatment of these products in the past. She expressed concern that the arbitrary and capricious treatment of ETF applications will have a lasting negative impact on the SEC's reputation. This loss of trust from the public will hinder the agency's ability to effectively regulate the markets in the future.
What are your thoughts on SEC Commissioner Hester Peirce's stance on spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
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Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
bbb.org
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein’s Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It’s not exactly legal – WSJ
How To
The growing trend of gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
The gold IRA allows owners to invest in physical gold bullion and bars. It is tax-free and can be used by investors who aren’t concerned about stocks and bond.
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In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
Investors looking for financial security are increasingly turning to the gold IRA.
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By: Kevin Helms
Title: SEC Commissioner Criticizes Delay in Spot Bitcoin ETF Approval — ‘We Squandered a Decade of Opportunities’
Sourced From: news.bitcoin.com/sec-commissioner-criticizes-delay-in-spot-bitcoin-etf-approval-we-squandered-a-decade-of-opportunities/
Published Date: Sat, 13 Jan 2024 05:00:44 +0000
