US SEC Commissioner Hester Pierce has criticized the agency for taking too long to finally approve Bitcoin exchange-traded funds (ETF) in the country.
10 Years Lost
In a watershed moment for the crypto industry, the SEC approved 11 Bitcoin spot ETFs on Wednesday, more than a decade after the first application was filed. This approval allows applicants to launch Bitcoin spot ETFs on exchanges, offering investors exposure to the asset without directly holding it.
Expressing her dissatisfaction at the SEC’s decision not to have approved Bitcoin spot ETFs earlier than expected, Pierce stated that the agency’s latest approval does not “undo the many harms created by the disparate treatment” of these products.
According to Pierce, the SEC’s past decisions have diminished public trust, muddied understandings of its role, wasted staff resources, and alienated a generation of product innovators.
Unfair Treatment
Pierce mentioned that the Commission has not treated Bitcoin spot ETFs fairly when compared to other similar products it has allowed over the years.
“We squandered a decade of opportunities to do our job. If we had applied the standard we use for other commodity-based ETPs, we could have approved these products years ago,” she said.
While the SEC has allowed futures-based ETFs in the US, it has continued to deny spot ETFs in the country, citing concerns of volatility and market manipulation.
Pierce stated that instead of prejudicial judgment, the SEC should have considered the successful operation of spot ETFs in other jurisdictions and be more open to approving them in the US.
She mentioned the SEC’s denial could have even been extended if not for the US District Court of Appeals’ decision to overrule the agency’s rejection of Grayscale’s application for a spot Bitcoin ETF.
Finally, she commended applicants’ reluctance to file Bitcoin spot ETF applications despite the agency’s continued rejection over the years.
Multiple Bitcoin spot ETFs are set to commence trading on January 11 (today).
