- SEC Commissioner Hester Peirce revealed feedback difficult the regulatory company’s place on spot bitcoin ETFs.
- Peirce explains the refusal of the SEC to approve spot merchandise is “puzzling,” and explains the expansion of bitcoin as a monetary instrument.
- Grayscale has employed a prime authorized thoughts from former President Obama’s administration to combat the SEC ought to the fund’s ETF software be denied once more.
Hester Peirce, a commissioner on the Securities and Change Fee (SEC), not too long ago published remarks on the regulatory company’s failure to permit spot bitcoin exchange-traded funds (ETFs) within the U.S.
“It’s time for the Fee to cease denying categorically spot crypto exchange-traded merchandise,” Peirce said. “The Fee’s resistance to a spot bitcoin ETP is turning into virtually legendary.”
The race for a bitcoin spot ETF in American markets has been fierce, however the SEC hasn’t conceded.
One of many largest vocal contenders for the launch of such a product is Grayscale Funding LLC, which has been attempting to transform its $13.8 billion Grayscale Bitcoin Trust (GBTC) into an ETF since April 2021. The corporate submitted its formal application in October 2021, and has since battled the tough, untraversed waters of spot bitcoin ETF regulatory approval within the U.S.
Grayscale not too long ago employed one of many top lawyers that served within the former President Obama’s administration to arrange for a authorized bout with the SEC, ought to they proceed to disclaim the fund’s ETF software.
The reluctance of the SEC to both approve such an providing or present larger readability on how issuers can achieve this baffles many within the business – along with Commissioner Peirce.
“Though bitcoin is a brand new asset, the idea of affording entry to commodities by an exchange-traded product is just not new,” Peirce defined in her revealed feedback.
Australia released its first spot bitcoin ETF final month, whereas Canada received the same spot ETF from Constancy in 2021. Within the U.S., the SEC has solely approved bitcoin ETFs that commerce futures contracts of the asset because the regulator continues to stay a laggard relating to permitting simpler entry to identify bitcoin in monetary markets.
“The persevering with refusal of the SEC to approve a spot bitcoin ETP is puzzling to many company observers,” stated Peirce. “The bitcoin market has grown, matured, change into extra liquid, and attracted extra, and extra refined (within the conventional monetary market sense of the phrase), members.”
Peirce closed her feedback by reiterating that whereas she continues to problem the SEC’s place on bitcoin spot ETFs, she stays optimistic that the regulatory company can change its course.