What “complexities” is the SEC faced with after the rejection of the Bitcoin ETF?

Cryptocurrency enthusiasts have long been frustrated by the U.S. Securities and Exchange Commission’s (SEC) refusal to accept Bitcoin applications for Exchange Traded Funds (ETFs). This is supposed to be a product that could bring the world’s most valuable digital asset into the mainstream in the eyes of institutional investors.

Earlier this year, under SEC chairman Gary Gensler, many people made optimistic predictions because he taught digital assets at the Massachusetts Institute of Technology. But since he took power in April, the agency has continued to raise concerns that the crypto sector has no oversight.

Just recently, U.S. guard dogs delayed the passage of a ruling on the Valkyrie Bitcoin ETF, like many other petitions before.

In the absence of any certainty, a management official would view the above situation differently.

Hester Peirce – SEC Commissioner

Affectionately referred to as “Crypto Mom” ​​by many in the community, Hester Peirce spoke in a recent interview with CNBC. interview to further explain their views on the SEC’s sentiment on ETFs.

“That’s probably the biggest and most frequently asked question I get: When will the SEC approve a Bitcoin ETF?”

According to Peirce:

“I think if we had applied our standards as we did with other products, we would have approved one or more of them. With every day that goes by, the reason we used in the past for rejection seems to get weaker and weaker. “

It’s worth noting that in 2020, Peirce told many regulators that they were using the old, “extended, unified standards” approach to filing digital assets. In fact, the SEC commissioner also pointed out that given the modern developments and innovations in this area, regulators are not prepared enough to consider this.

“Bitcoin is a new phenomenon and its long-term viability is uncertain. It can succeed, but it can also fail. However, the commission is not well equipped to assess the likelihood of an outcome for Bitcoin or any other asset. “

Hence, thanks to the growing interest and investment from institutions, Peirce is quickly recognizing cryptocurrencies and their value.

“I think the market has matured a bit.”

The SEC has denied many requests from various companies while trying to launch a Bitcoin ETF. While the United States agrees with head shaking, Canada appears to be taking a more open approach.

But what are the consequences of a refusal? The Commissioner stressed:

“The complications of rejection become more severe as people look for other ways to do the same things that they would do with the ETF product. They are looking for other types of products that are not easily available and easy to use. You also look at companies that may be somehow related to Bitcoin or crypto in the broader sense. “

A Republican named one of five SEC commissioners by former President Donald Trump, Peirce recently advocated decentralized finance (DeFi) in eliminating intermediaries at a virtual conference.

“I don’t want a law enforcement based approach. If we can sort out certain questions in DeFi, we should. “

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According to AMBCrypto

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