Bitcoin ETF

when

Crypto Revolution

<p><em><strong>Hester Peirce, also known as the ‘Crypto Mom’, expressed her disapproval stating that the regulatory body is facing challenges in keeping up with the Crypto evolution.&nbsp;</strong></em></p> 
<p>Commissioner Hester Peirce criticized the Securities and Exchange Commission (SEC) for its flaws during a recent event sponsored by the Practicing Law Institute called “SEC Speaks”. In her speech, Peirce referred to a previous intervention called “The SEC’s Garden,” where she illustrated the complexities of the SEC staff guidelines.</p> 
<h2 class="wp-block-heading" id="strong-the-story-goes-back-to-sec-s-bitcoin-etf-approval-strong"><strong>The Story Goes Back To SEC’s Bitcoin ETF Approval</strong></h2> 
<p>Earlier, the US SEC had approved the Bitcoin ETFs, causing a surge in the crypto market. Ethereum and BNB have seen significant rises. The spot ETF was approved by Gensler, Peirce, and Uyeda, while Crenshaw and Lizárraga voted against it. However, despite the celebrations from crypto enthusiasts worldwide, the SEC’s statement reveals the government’s views and plans regarding cryptocurrencies.&nbsp;</p> 
<p>Various journalists have observed that the SEC’s harsh words in approving the Bitcoin ETF do not seem natural. The government has always been wary of cryptocurrencies due to their “over-private” nature.</p> 
<h2 class="wp-block-heading" id="strong-peirce-on-sec-strong"><strong>Peirce On SEC</strong></h2> 
<p>This sometimes differs from a simple reading of the rules. Peirce described this maze of guidelines as an obstacle that prevents clarity and coherence in the securities sector. Peirce believes the SEC should involve the entire commission, not just staff, in making regulations.</p> 
<p>Peirce questioned whether small regulatory agencies, such as the SEC, are appointed by the executive branch and approved by Congress but designed to be independent of any given administration or political party.</p> 
<h3 class="wp-block-heading" id="strong-sec-s-failure-according-to-peirce-strong"><strong>SEC’s Failure According to Peirce</strong></h3> 
<p>She believes that the SEC has failed to articulate clear and consistent rules for companies to follow, and her advocacy for financial sector innovation has earned her the nickname “Crypto Mom.”</p> 
<p>Peirce issued a lengthy dissent with 26 footnotes when the SEC denied the Winklevoss-owned Gemini’s request for a Bitcoin-based exchange-traded fund (ETF) in July 2018. Not only did Peirce say that the proposal should have been approved.&nbsp;</p> 
<p>In addition, she also accused the Commission of “engaging in merit regulation,” which is the idea that the government prohibits anyone from owning a particular security, even if they are willing to take on the risk. Similarly, she dissented when the SEC denied the New York Stock Exchange’s application to allow it to list a Bitcoin-backed ETF.&nbsp;</p> 
<h3 class="wp-block-heading" id="strong-gensler-was-allegedly-forced-to-aprove-the-etf-strong"><strong>Gensler Was Allegedly Forced To Aprove The ETF</strong></h3> 
<p>A media outlet reported that a court forced Gensler to approve a bitcoin ETF. The SEC’s official statement also mentions that Gensler noted the practical uses of metals ETPs.&nbsp;</p> 
<p>Whereas, bitcoin is primarily used for speculation and illegal activities such as money laundering, ransomware, sanction evasion, and terrorist financing. However, this may be one of the reasons that the SEC is not looking strictly towards the crypto rules and regulations.&nbsp;</p> 
<p>Peirce may seem reflexively pro-finance and anti-regulation because she is a Republican hostile to Dodd-Frank and appointed by Trump. However, she seems genuinely interested in making the American financial regulatory system work more efficiently and effectively as reported by media outlets.</p> 
<p>On individual issues, Peirce’s views not only have to be reckoned with but are at least partially right. The SEC needs to reconsider its prohibition on Bitcoin- or crypto-based ETFs, as Canada and Brazil have already approved Bitcoin-backed ETFs, and billions of dollars have successfully been invested in them.&nbsp;</p> 
<h2 class="wp-block-heading" id="strong-sec-asked-for-additional-funding-for-crypto-revolution-strong"><strong>SEC Asked For Additional Funding For Crypto Revolution</strong></h2> 
<p>SEC Chair Gary Gensler has released a 148-page document that contains several years of performance reports. He emphasized how advances in technology and communication have brought about shifts in markets, particularly in the unpredictable world of <a href="https://www.thecoinrepublic.com/2024/01/29/socrates-soc-token-makes-a-splash-in-crypto-markets-with-exchange-listings/" target="_blank" rel="noreferrer noopener">crypto markets</a>, where noncompliance and investor risks are prevalent.</p> 
<p>Gensler underlined the potential for misconduct that these changes bring and stressed the importance of the SEC as a regulator staying ahead of actors. The plan for 2025 includes adding 148 staff members, increasing the total from 5,473 in 2024 to 5,621 in 2025.</p> 
<h3 class="wp-block-heading" id="strong-general-counsel-required-2-more-posistions-strong"><strong>General Counsel Required 2 More Posistions</strong></h3> 
<p>Meanwhile, the SEC’s Office of the General Counsel has also required two more positions to support its whistleblowing program. This has seen a significant increase in volume. This is to help with the rising number of civil and administrative litigation filed against the Commission.</p> 
<p>The market capitalization of crypto assets has grown significantly in recent times, prompting increased efforts to regulate them. Governments have been wary of cryptocurrencies due to their “over-private” nature. Furthermore, since the government approved the Bitcoin ETF in January, this relationship has become even more complicated.</p> 
<h3 class="wp-block-heading" id="strong-regulators-can-t-keep-pace-with-the-crypto-evolution-says-peirce-strong"><strong>Regulators Can’t Keep Pace With The Crypto Evolution, Says Peirce</strong></h3> 
<p>Regulators are struggling to keep pace with the rapidly evolving crypto world due to stretched resources and many other priorities. It is challenging to keep track of the crypto markets due to inconsistent data. Additionally, it is difficult for regulators to monitor the activities of numerous actors who may not be bound to conventional disclosure or reporting regulations.</p> 
<h3 class="wp-block-heading" id="strong-summary-strong"><strong>Summary</strong></h3> 
<p>The SEC, an independent regulatory agency, was accused by Peirce of engaging in merit regulation. The Commission approved a spot ETF, despite some members voting against it. Governments are wary of cryptocurrencies due to their over-private nature. The relationship between governments and cryptocurrencies has become more complicated following the approval of the Bitcoin ETFs.</p> 
<h4 class="wp-block-heading"><strong>Disclaimer</strong></h4> 
<p>The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of monetary loss.</p>

The “Crypto Mom” Hester Peirce Criticized SEC for Crypto Regulation

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