SEC Commissioner Thinks Bitcoin ETF Might Help Form Fair Price for Assets

Hester Peirce, a member of the Securities and Exchange Commission of the USA said that the approval of a Bitcoin exchange-traded fund (ETF) could improve the pricing of unlisted investment products.

In an interview with Bloomberg on May 28, Peirce argued that the risk of unlisted investment products could be greater if not handled by BTC financial products on eligible exchanges. Accordingly, she believes that cryptocurrency-related financial products can have a better price discovery process through the BTC ETF sanctioned by the financial watchdog.

In addition, Hester echoed the view that US financial regulators impose additional requirements on cryptocurrency-related financial products and treat them unfairly. It seems that the Commission has no interest in approving ETFs that can be offered to the general public.

Hester is actively supporting the cryptocurrency industry and the approval of the Bitcoin ETF and she calls herself the ‘Cryptomom’. Earlier, she expressed several public complaints about the SEC’s decision to reject the BTC ETF.

Work to be done

When the SEC rejected Wilshire Phoenix’s Bitcoin ETF in February, the commissioner revealed that the SEC seems to have no intention of licensing BTC products. In early February, Hester filed a Safe Harbor application that could enable blockchain projects to get a 3-year immunity from the United States securities laws to develop distributed systems, as coinidol.com, a world blockchain news outlet, reported.

The US securities authorities have declined to launch the BTC ETF over 12 times in the past two years. The SEC may postpone the decision to approve and reject financial instruments for information collection or deliberation pursuant to the Securities Act. The decision can be postponed up to 240 days after the application is published in the Federal Government Gazette.

SEC chairman Jay Clayton showed that in order for Bitcoin ETFs to be approved, the maturity of the underlying market must be preceded by improving market health, joint monitoring, and security research functions.