💡 Spot Bitcoin ETFs Approved: SEC Commissioner Expresses Regret, Gensler Continues to Face Criticism

In a recent interview, Hester Peirce, the Commissioner of the United States Securities and Exchange Commission (SEC), appeared to express regret regarding the agency's handling of approvals for spot Bitcoin ETFs.

SEC Commissioner admits to wasting a decade of opportunities to perform duties.

By Julia Smith, Last updated: January 24, 2024

🕑 Estimated reading time: 3 min

Introduction: A Regretful Commissioner and a Controversial Chairman

In a recent interview, the Commissioner of the United States Securities and Exchange Commission (SEC), Hester Peirce, expressed remorse over the agency’s handling of spot Bitcoin ETF approvals. While some may see this as a positive step towards progress, SEC Chair Gary Gensler continues to face criticism for his handling of the entire process.

Chapter 1: Peirce’s Regret and Ethereum ETFs

During her conversation with Coinage’s Zack Guzmán, Commissioner Peirce admitted that the agency missed numerous opportunities to approve spot Bitcoin ETFs. She acknowledged that if the SEC had applied the same standards used for other commodity-based ETPs, these products could have been approved years ago. However, they only took action after a court ruling forced their hand. When asked about the possibility of a court ruling being necessary for Ethereum ETFs, Peirce firmly rejected the idea. She emphasized that the SEC should not rely on external pressure to make the right decisions.

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Q&A: What are the key factors contributing to the delay in approving Bitcoin ETFs?

While it’s difficult to pinpoint a single factor, some key reasons for the delay in approving Bitcoin ETFs may include: 1. Regulatory concerns over market manipulation and investor protection. 2. The SEC’s desire for a robust and regulated market infrastructure. 3. Volatility and price manipulation risks associated with cryptocurrencies.

Chapter 2: Gensler’s Stance on Bitcoin ETFs

SEC Chair Gary Gensler’s response to the approval of spot Bitcoin ETFs was more measured. He made it clear that while the SEC allowed these ETFs’ listing and trading, it did not endorse or approve of Bitcoin itself. Gensler’s cautious approach emphasizes the multitude of risks associated with cryptocurrencies. However, his actions and statements have been subject to scrutiny.

Q&A: What are the risks Gary Gensler is referring to?

Some risks associated with Bitcoin and cryptocurrencies that Gary Gensler has highlighted include: 1. Volatility: Cryptocurrency prices can be highly volatile, leading to potential substantial losses for investors. 2. Regulatory Uncertainty: Due to the evolving nature of cryptocurrency regulations, there is a level of uncertainty surrounding compliance and enforcement. 3. Market Manipulation: The potential for market manipulation is a concern in the relatively unregulated cryptocurrency market. 4. Security Vulnerabilities: Cryptocurrency exchanges and wallets can be vulnerable to hacking and cyber attacks, resulting in the loss of funds.

Chapter 3: Ripple CEO’s Criticism of Gensler

Ripple CEO Brad Garlinghouse added to the criticism of Gensler, calling him a “political liability” during an appearance at the World Economic Forum. Garlinghouse accused the SEC Chair of neglecting the interests of the citizenry and hindering long-term economic growth. He expressed hope for a new SEC Chair who would prioritize the well-being of the American people.

Q&A: How might the criticism of Gary Gensler impact the SEC’s approach to cryptocurrency regulation?

While criticism can potentially influence decision-making, it is essential to remember that regulatory decisions are not based solely on the opinions of individuals. The SEC’s approach to cryptocurrency regulation is shaped by numerous factors, including legal considerations, industry feedback, and the agency’s overall mandate to protect investors.

Conclusion: The Road Ahead

As we observe developments in the SEC’s approach to cryptocurrency regulation, it is clear that both internal and external dynamics play a role. Commissioner Peirce’s regret may indicate a shift in perspective within the agency, potentially leading to more favorable conditions for future cryptocurrency ETF approvals. Meanwhile, Gensler will need to address the criticisms leveled against him and consider the long-term impact of his decisions.

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Reference List:

1. Vaneck and WisdomTree Spot Bitcoin ETF Tickers Secure DTCC Listing as Applicants Await SEC Approval
2. SEC Confirms X Account Hack Happened via SIM Swap
3. Ripple CEO Brad Garlinghouse Says Gensler is a Political Liability
4. SEC Chairman Gary Gensler on Spot Bitcoin ETFs

Julia Smith is a blockchain and financial technology expert who frequently writes engaging articles on these topics. Follow her on Twitter for the latest updates.

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