SEC Commissioner Advocates for Approval of Spot Bitcoin ETF

SEC Commissioner Hester Peirce has signalled a potential approval of first spot Bitcoin ETF amid evolving regulatory discussions.

Eagle looking around with binoculars, Bitcoin ETF glowing in the background.
Created by Kornelija Poderskytė from DailyCoin
  • The SEC Commissioner has hinted at a pivotal shift in stance regarding Bitcoin ETF approval.
  • Ongoing discussions between the SEC and ETF applicants have reached a critical juncture.
  • The SEC’s regulation approach has faced scrutiny amidst the evolving crypto landscape.

Amid a wave of anticipation and excitement encircling the potential approval by the United States Securities and Exchange Commission (SEC) of the inaugural spot Bitcoin (BTC) exchange-traded fund (ETF), Commissioner Hester Peirce has voiced an encouraging stance, indicating no grounds for the regulator to impede this development.

No Hurdles for BTC ETFs, SEC Commissioner Reveals

In a recent interview with Bloomberg’s Kailey Leinz and Sonali Basak streamed on November 21, Peirce shared her perspectives on the SEC’s process for evaluating spot Bitcoin ETF applications alongside the agency’s oversight of cryptocurrency assets and related issues.

When queried by Leinz about the ongoing dialogues between applicants seeking these spot Bitcoin ETFs and the SEC personnel, Peirce emphasized her long-standing transparent stance on the matter. She asserted:

“There is no reason for us to stand in the way of a spot Bitcoin exchange-traded product. (…) We’ve had a number come before us where I said I don’t see the reason that we’re denying these. We got a little bit of a nudge from the court, and we’ll see where things go from here.”

Peirce Brings Grayscale’s SEC Snag to Forefront

Addressing the court’s intervention, Peirce alluded to the case involving Grayscale, a crypto asset manager, where the judge rebuked the SEC for its “arbitrary and capricious” denial of Grayscale Bitcoin Trust (GBTC) transformation into an ETF, which acted as a catalyst for reconsideration.

On the Flipside

  • While Commissioner Peirce advocates for a spot Bitcoin ETF, a more deliberative and comprehensive evaluation of the market’s maturity and risk factors is essential before granting approval.
  • Not all past applications for similar ETFs have been met with unanimous consent; previous rejections by the SEC indicate a nuanced and debated approach rather than a straightforward approval process.

Why This Matters

Commissioner Hester Peirce’s affirmative stance on the potential approval of the first spot Bitcoin ETF signifies a potential shift in the SEC’s approach towards cryptocurrency assets. This reconsideration highlights evolving regulatory attitudes, potentially opening doors for broader market participation and innovation within the crypto landscape.

To learn more about presidential pardons in the context of the SEC this Thanksgiving, read here:
Presidential Pardon: Should We Forgive the SEC this Thanksgiving?

To explore the potential impact of Binance’s settlement on the likelihood of ETF approval, read here:
Is ETF Approval More Likely Following Binance’s Settlement?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.