With as many as eight ETF applications under review, a commissioner from the American SEC said that the exchange-traded funds should have been approved.
Hester Peirce, who is also known as the “crypto mom” across the industry, further went on to say that whether to buy BTC or not should be decided by the people only. This comes as the US regulator is yet to give the go-ahead to ETF applications.
On the other hand, with the appointment of the former blockchain professor at MIT Gery Gensler as the SEC’s new head, the investors and crypto circles are hopeful of an inclusive outcome. While to the CNBC on Thursday, Peirce said,
I thought that if we had applied our standards as we have applied them to other products, we would already have approved one or more of them. With each passing day, the rationale that we have used in the past for not approving seems to grow weaker.
SEC’s Double Standards
Previously, the commissioner had highlighted the double standards of the American regulator in terms of asking crypto exchanges and firms for more assurances compared to traditional equity-based products.
Not only that, but she further went on to criticize SEC’s rejection of an ETF application by Winklevoss twins, arguing that the digital assets market has matured over the last couple of years. Peirce added that more and more institutional and mainstream investors are increasing their participation in the market.
Institutional Investor’s Growing Interest
Not only the SEC’s commissioner but numerous funds and investment managers have also noticed the growing participation of institutional investors in the BTC market and crypto-based offerings.
Besides that, Peirce also pointed out that if the exchanges comply with the rules and protect their investors from fraud, the SEC has no right to reject or accept the application based on the merits of the investment itself.