Esther Pierce spoke in an interview about her frustration with the slow pace of approval of cryptocurrency exchange-traded funds (ETFs). Pearce advocated for approval of these investment products back in 2018, and the regulator only gave the green light in January 2024. The regulator has repeatedly rejected applications from crypto companies, citing concerns about market manipulation.
Pierce said the SEC’s final decision to approve Bitcoin-linked ETFs was influenced by a court ruling calling on the agency to reconsider Grayscale’s application to launch a spot Bitcoin ETF. The court found the SEC’s reasoning “arbitrary and capricious,” and once the regulator received this decision, it became difficult for it to reject similar products in the future, Pierce explained.
The official acknowledged that the SEC has “tightened its grip” on oversight of the crypto industry, especially after the collapse of the FTX crypto exchange and the bankruptcy of several crypto lenders like Celsius in 2022. Pearce said the agency needs to take a balanced approach to regulation so it doesn’t stifle innovation or create unnecessary barriers. The Commissioner called on the SEC to shift its focus from trying to force crypto companies to comply with traditional market rules to understanding the nuances of the cryptocurrency market. By doing so, the SEC will strengthen cooperation with industry companies, allowing for the creation of adequate requirements for market regulation in the United States.
Pierce recently said the SEC is deliberately vague in its language about classifying cryptocurrencies as securities. According to Pierce, in this way the regulator demonstrates neglect of its responsibilities.
Source: Bits
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