A high-ranking official from the U.S. Securities and Exchange Commission (SEC) is criticizing the regulatory body for its fierce reluctance to approve a spot-based Bitcoin (BTC) exchange-traded fund (ETF).
In a new speech, Commissioner Hester Peirce says that the SEC’s consistency in rejecting spot Bitcoin ETF bids is becoming “almost legendary” at this point, and that the regulator is holding Bitcoin-related products to a higher standard than other assets.
“It is time for the Commission to stop denying categorically spot crypto exchange-traded products. The Commission’s resistance to a spot bitcoin ETP is becoming almost legendary…
The reasons for this resistance to a spot product are difficult to understand apart from a recognition that the Commission has determined to subject anything related to Bitcoin – and presumably other digital assets – to a more exacting standard than it applies to other products…
The reasoning underlying the Commission’s denials of spot Bitcoin ETPs (exchange-traded products) is itself general and conclusory, which makes it difficult to know how approval could be achieved.”
Peirce also says that the SEC’s refusal to green light a spot Bitcoin ETF blatantly disregards the tremendous growth of Bitcoin and the maturation of its infrastructure and market participants over the last 13 years.
“The continuing refusal of the SEC to approve a spot Bitcoin ETP is puzzling to many agency observers. The Bitcoin market has grown, matured, become more liquid, and attracted more, and more sophisticated (in the traditional financial market sense of the word), participants.
At thirteen years old and as of about an hour ago, Bitcoin has a market cap of approximately $430 billion and is trading at around $22,500.
Bitcoin investors comprise natural persons and institutions, including regulated market participants. Many insurance companies, asset managers, university endowments, pension funds, large banks and public companies have invested in Bitcoin or are considering doing so.
Increasingly sophisticated infrastructure has built up around Bitcoin and crypto markets more generally. Like the traditional finance landscape, the crypto terrain is dotted with trading platforms, trading firms, venture capital firms, hedge funds, law firms and accounting firms.”
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