How the SEC “dug into a hole” by not approving a Bitcoin ETF

Pro crypto Securities and Exchange Commission (SEC) Commissioner Hester Pierce talked about the U.S. current regulatory landscape on Bitcoin’s Association YouTube channel.

The Commissioner revealed that some progress has been made to change the approach the regular have on digital assets.

Pierce has chosen to focus on the innovations brought by digital assets and cryptocurrencies and their benefits to consumers. Her colleagues at the regulatory body have taken a largely opposite stance.

The Commissioner highlighted the importance that flexibility and the ability to a point of view quickly have in this field. The Commissioner has repeatedly called for approval of a Bitcoin-based Exchange Traded Fund (ETF). Her requests have been ignored by the regulator. Pierce said:

What I would urge my fellow regulators and people at the Fed to think is to think not only to have the reaction of looking at where the negatives are but to really look for the positives (…). I would hope they won’t ruled out the positive things that could happen in the purely private sector as well (…). Don’t view this (crypto regulation) as a competition between the private and public sector.

Pierce asked his fellow commissioners to take a “more optimistic” stance. A regulator that becomes an obstacle to innovation, in the Commissioner’s view, will take lose-lose actions for all parties.

For Pierce, the crypto industry is in its infancy. Eventually, she believes that its use cases may be integrated into various areas to remove “single points of failure” and increase the “resilience” of the financial system. The Commissioner invited to see “the whole picture”.

The SEC has rejected the launch of a Bitcoin ETF. However, Pierce believes that the interest the cryptocurrency has recently received is changing how her fellow regulators view the asset. The approval of Gary Gensler as chairman of the SEC, she said, could bring a different vision to the institution.

The…

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