Hester Pierce pointed out the harm from the controversial position of the SEC

Hester Pirece-min
Hester Pirece-min

The ambiguity of regulation of the digital asset industry is harmful to US citizens. The commissioner said SEC Hester Pierce.

She noted the “inconsistency” of the agency’s approach to bitcoin ETFs in comparison with the agency’s decisions regarding other products.

“In other countries, there are spot exchange-traded funds that have been approved for a long time, there is a huge demand for them. It seems to me that the SEC could apply futures product rationales for an ETF like this.” the official said.

That kind of ambiguity could force companies or projects to spend unnecessary time evaluating whether to exit the US, comply with requirements, or shut down completely, Pierce said.

“I don’t think it’s in the best interest of the American public to maintain this kind of ambiguity in regulation. […] Why not bring some clarity?she suggested.

In 2021, the SEC approved ProShares and Valkyrie Investments products based on bitcoin futures. CME. To date, the Commission has rejected all offerings of physical ETFs based on digital gold, citing concerns about spot market manipulation.

In December 2021, Grayscale admitted that the regulator could violate the law on administrative procedures when approving an exchange-traded fund based on bitcoin futures and rejecting applications based on its “physical” version.

In July 2022, the Wall Street Journal accused SEC Chairman Gary Gensler of a “confusing” approach to accepting a digital gold-based spot ETF.

A wave of filings from BlackRock, Valkyrie, Fidelity Investments, WisdomTree and Invesco, as well as ARK Invest with 21Shares could potentially ease the agency’s concerns about manipulation.

They contain updated proposals, taking into account the Commission’s criticism of the so-called joint monitoring agreement or the details of this mechanism.

Recall, according to Bernstein analysts, the regulator will not be able to maintain its negative position in relation to spot ETFs based on the first cryptocurrency for a long time.

Circle CEO Jeremy Allaire predicted that the recent spate of applications to launch digital gold-based spot exchange-traded funds would lead to SEC approval.

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