Hester Peirce, the commissioner at the U.S. securities regulator, has pressed for a less vigilant approach towards advancement in the exchange-traded funds segment on the regulator’s part. As per the report, Peirce urged her co-commissioners to permit for innovation in the ETF segment by reducing their caution.
The existing scenario
The SEC has yet not approved any cryptocurrency exchange-traded fund, despite the tenuous initiatives by asset management companies such as VanEck and Bitwise. Bitwise even sent a white paper to the SEC, stating that the cryptocurrency industry is much more regulated and efficient than how it is seen by the general public. This view is in direct answer to the SEC’s worries over price manipulation and fraud in the cryptocurrency industry, which the regulator mentioned as one of the prime reasons behind delay or rejection of all bitcoin ETF proposals.
Ms. Peirce is popularly known as CryptoMom as she openly reveals her support for cryptocurrencies. She has repeatedly said that the SEC was mistaken to reject proposals for the release of a bitcoin ETF presented last year by the Winklevoss twins. Those who are not aware of the Winklevoss twins –Tyler Winklevoss and Cameron Winklevoss, they should know that the twins are Internet entrepreneurs and American rowers, known for suing Mark Zuckerberg and establishing HarvardConnection. They sued Zuckerberg, claiming that the founder of Facebook stole their idea to set a social networking site.
This lawsuit eventually got them $65 million. Currently, the Winklevoss twins are Bitcoin investors and venture capitalists. The twins had put big funds into a Bitcoin payment processor named BitInstant; however, it was shut after its Chief Executive Officer, Charlie Shrem was accused of money laundering. The two have also set Winkdex, which is a financial index for following the price of Bitcoin.
Also, they are the creators of the Bitcoin exchange named Gemini, which marks as the first ether exchange platform to be licensed in the world.
Ms. Peirce stated that a directly regulated bitcoin ETF has the potential to inspire more institutional investors to join the rapidly growing cryptocurrency market.