The SEC commissioner believes that Bitcoin’s market maturity is sufficient enough to allow ETF financial products.
During a virtual panel discussion with the Washington (DC) Bar Association, SEC Commissioner Hester Peirce criticized her American stock exchange regulator’s negative attitude towards a Bitcoin index fund (ETF)
Moderator Ashley Ebersole asked Peirce, who is also known in the industry as the “crypto mom”, about the repeated rejections of requested Bitcoin ETFs by the SEC, to which the SEC replied: “I am dissatisfied with the decisions my colleagues have made about the Rejection of listed Crypto Nation Pro financial products, stressed repeatedly. “
The high volatility of the market-leading cryptocurrency, which is cited as one of the main reasons for the rejections, is a problem that has already been solved with approvals for other ETFs, says Peirce: „I suggest that we see how we do it have handled similar financial products in the past. A lot of the products we approved had their problems, but you can nonetheless build a decent derivative (like an ETF) on them. “
Ji Kim of Gemini Trust then followed up the discussion and wanted to know exactly what the concerns of the American regulator about Bitcoin ETFs were, to which Peirce admitted: “You can’t just assume that a market won’t work as long as you can not treated according to the same legal requirements as all others“.
“I think the Bitcoin market is mature enough. There is now a lot of money in it, there are many highly professional market participants and a lot has already been done to standardize Bitcoin trading. I would say that the market maturity is high enough to build derivatives on. “
According to a recent interpretation of the law by the American banking regulator, banks are allowed to offer custody services for reserves of stablecoins based on fiat currencies. Peirce emphasizes that the SEC is following such developments and that „there is close consultation between regulators“.
However, the “crypto mom” also warns that some crypto projects only market their products as stablecoins, while these are more like traditional securities: “You can’t just stick the stablecoin label and assume that the legal treatment will then take place accordingly. „
Peirce, who had got its nickname because of its open attitude toward crypto currencies of the industry, was the last month for a second term as SEC commissioner confirmed , which means that it will remain in that post until the 2025th