In a virtual fireside chat with D.C. Pub, SEC Commissioner Hester Peirce criticized the Commission’s longstanding opposition to a Bitcoin ETF.
Moderator Ashley Ebersole asked about the SEC’s public dissatisfaction with a long line of proposals for US Bitcoin ETFs. Peirce, often referred to as “CryptoMom”, responded against these denials: “I was pretty open about my disagreements with my colleagues when I turned down some of these exchange-traded products.”
Bitcoin is not only volatile as a basic investment for an exchange-traded fund, argued Peirce. “I want us to look at how we’ve seen similar products in the past. A lot of the other products we have are based on products that are messy,” he continued. “You can still have a decent product built on it.”
Ji Kim of Gemini Trust also asked what the SEC has to do with a Bitcoin ETF. Peirce replied, “You cannot assume that the markets will not work unless they are regulated in exactly the same way as the stock markets.”
I think the bitcoin markets are mature. There is a lot of money out there now, there are a lot of very sophisticated players in the field, and a lot of work has been done to regulate Bitcoin trading in particular. I would say the markets are mature enough to build something else on.
In relation to a recent interpretation by the Treasury regulator that banks can hold reserves for stable coins based on fiat currencies, Peirce noted The SEC has paid close attention to such developments. “There’s a lot of regulatory coordination going on.”
Despite the new ruling, Peirce warned that some products advertised as stablecoins are actually securities: “You can’t just call it stablecoin and expect it to be regulated that way.”
Commissioner Peirce began her second term with the SEC last month, which means she will remain on the committee through 2025.