Despite the volatility in the crypto market lately, it appears the market is recovering. Moreover, more opportunities may be opening up for crypto investors.
Hester Peirce, a SEC commissioner, has questioned the agency’s notion of rejecting ETF applications. The commissioner urged the agency to stop denying the application for crypto exchange-traded products (ETPs).
Peirce made this statement on June 14th while speaking at a conference on regulation. She stated the regulator’s resistance to spot BTC ETF is getting serious.
No Clear Reasons For The SEC’s Resistance To ETFs
According to Peirce, there are no clear reasons why the agency rejects ETF applications. She believes the agency’s aversion toward digital assets may be responsible for its actions.
Moreover, the SEC has been very strict on crypto and its products than other assets. As a result, it has set high standards for the crypto industry.
Furthermore, the crypto market has matured, gained more liquidity, and attracted sophisticated participants. These market participants are puzzled by the action of the watchdog.
Launch Of Spot ETFs Globally
Additionally, Peirce talked about spot ETFs in other countries. She noted that other countries are launching ETFs with easy and high interest from investors.
In Canada, Purpose Investment launched the first spot BTC ETF in 2020. The ETF reached over CAD$1 billion in AUM (Assets Under Management) one month after its launch.
Also, she stated that Spot ETFs are becoming famous in Europe. There are over 70 cryptocurrency ETFs with a valuation of over $7 billion.
While concluding, she hopes the SEC will discuss profitable ways to regulate the crypto sector. She stated that;
“Despite the notion about crypto, it needs a productive approach. Hence, investors and the SEC must work together to achieve this goal. The agency has what it takes to provide clear crypto regulations and safeguard the sector.”
SEC’s Position On Cryptocurrency
Right from time, the SEC has maintained a harsh stance toward digital assets. Earlier, Finbold reported that Grayscale would likely sue the SEC if it rejects its ETF application.
Before now, Grayscale applied for its GBTC to become a spot BTC ETF. Unfortunately, the SEC has remained dormant on the matter.
Moreover, the situation had made some members of Congress send the agency a letter. They accused the agency of taking steps that stifled crypto innovation and development.
Recall that in May, the regulator rejected the spot ETF application of OneRiver. However, it is uncertain whether the position of the regulator would change.