Commissioner: SEC should not impede the approval of Crypto Products


Hester Peirce, the commissioner of the Securities and Exchange Commission (SEC) has said that the government should not impede the emergence of crypto-based products especially when the prices of Bitcoin slashes and the entire crypto market becomes volatile.

Further speaking to the subject matter, Peirce requested that the SEC should not force crypto markets to incorporate comprehensive government regulations needed especially when products on top of the markets. Additionally, she said in her statement that “the Commission should not default to a demand that the crypto markets be subject to comprehensive government regulation as a precondition to allowing products linked to those markets to be traded in markets that we regulate.”

Let us not forget that Peirce was known for CryptoMom said strictly that the Winklevoss Bitcoin Trust exchange-traded fund (ETF) was rejected just because it was forced to incorporate the stiff regulations of SEC. While disagreeing to the matter, she further said that the SEC justified the rejection of the Winklevoss Bitcoin ETF by stating that the evaluation of Bitcoin or blockchain technology as an investment or innovation was not involved in the process of disapproving the ETF.

While replying to the comments that Peirce has made, the SEC said that the rejection of the Winklevoss Bitcoin ETF had a connection to the evaluation criteria that SEC used for Bitcoin and Cryptocurrencies as an asset class.

However, Peirce further said in her statements that the denial of Winklevoss ETF was the SEC’s main focus on Bitcoin markets and not ETF. She elaborated further saying that “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.”

Amid this, she further said that the cryptocurrency exchange market is still inaccessible to numerous investors and it requires a certain set of knowledge for the market and investment altogether. She added “this complexity means that only a very particular type of investor can pursue the diversification opportunities such assets can provide. Entrepreneurs are developing new products through which people can access cryptocurrencies indirectly or hedge their cryptocurrency holdings. Bitcoin futures, for example, began to trade recently.”

In a nutshell, if the SEC anxious about cryptocurrencies is lacking proper infrastructure in place, so it’s highly recommended that the SEC to create certain infrastructure for the crypto markets so that the market can be accessed by numerous investors.

Shalin Soni

Shalin joined CryptoNewsZ as Associate Finance (Cryptocurrency Research & Analysis) in 2018 and has 10 years of collective experience to work on financial modeling and financial planning & analysis activities (fp&a) domains. He has worked with various organizations in India and added values by leveraging his skills and expertise. He has strong domain expertise in research & analysis, valuation, and fp&a!! You can also mail him at [email protected] to discuss anything related to his reports.
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