SEC Commissioner Hester Peirce compares banning bitcoin to shutting down the web, stating that governments could be silly to strive. She additionally gives some insights into whether or not the SEC will approve a bitcoin exchange-traded fund (ETF) this 12 months.
Governments Would Be Silly to Attempt to Ban Bitcoin
U.S. Securities and Change Fee (SEC) Commissioner Hester Peirce shared her view of governments banning bitcoin and cryptocurrency regulation in an interview at Marketwatch’s Investing in Crypto occasion final week. She was additionally requested in regards to the probability of the securities regulator approving bitcoin exchange-traded funds (ETFs) this 12 months.
Peirce, typically generally known as “crypto mother,” has been pushing for the SEC to approve a bitcoin ETF for a number of years. She was requested in the course of the interview whether or not banning cryptocurrencies is a chance since some individuals nonetheless consider that governments can all the time ban bitcoin, together with Bridgewater Associates founder Ray Dalio, The Massive Quick’s Michael Burry, and Ron Paul. The commissioner replied:
I feel we have been previous that time very early on as a result of you would need to shut down the web. As I’ve stated up to now, I don’t see how you would ban it … I feel that it might be a silly factor for the federal government to strive to do this.
She identified nonetheless that governments “might definitely take some time” to ban bitcoin or different cryptocurrencies. She defined that “A authorities might say it’s not allowed right here however individuals would nonetheless have the ability to do it and it might be very arduous to cease individuals from doing it.”
Nevertheless, the commissioner pressured that there’s “A much bigger downside” in banning cryptocurrency, which “is that we’d be lacking out on the innovation round bitcoin and different digital property if we determined to attempt to cease them.”
Will the SEC Approve Bitcoin ETFs This 12 months?
Commissioner Peirce was additionally requested if this 12 months is the 12 months the SEC will approve a bitcoin exchange-traded fund (ETF) as many traders predict. “That’s the large query that everybody has,” she replied, including that her reply is identical one which she’s had for the final three years, “which is I don’t know.”
She famous that the SEC is in a interval of transition with a brand new chairman, Gary Gensler, prone to be confirmed within the subsequent couple of weeks and prone to begin shortly thereafter. “That may make a giant distinction on this query of whether or not and when an exchange-traded product will get accredited,” the commissioner opined.
As for the bitcoin market, Peirce detailed:
Within the three years that I’ve been on the fee, the market has matured tremendously. We’re seeing quite a lot of institutional curiosity out there. We’re seeing kind of quasi exchange-traded merchandise in it.
Peirce then identified that Canada has already accredited some bitcoin ETFs. “You might be seeing rather more institutional involvement within the underlying market,” she famous, including that these are “the kind of issues that may make us snug when it comes to how that underlying market works.”
The commissioner emphasised: “The bitcoin market is rarely gonna appear like an fairness market, for instance, so I feel attempting to impose that form of a construction on the underlying market is inappropriate. That was what was hinted at in a few of these prior disapprovals.”
Commenting on how different nations could also be forward of the U.S. when it comes to innovation, Peirce stated:
I feel we’re definitely behind the curve. We’ve seen different nations take a way more, I’d say, productive method to regulating crypto within the sense that it’s not saying we shouldn’t have any laws in any respect, they’ve simply been saying let’s construct a regulatory framework that works for crypto.
“Our method has been rather more of a ‘say no and inform individuals to attend’ method,” she described. “So I feel we actually want to show it round, be keen to work, to construct a framework that’s acceptable for this trade. I’m optimistic that with the brand new chairman coming in, who has deep data of those markets, the crypto markets, that’s one thing that we might do collectively, to construct an excellent regulatory framework.”
Do you agree with SEC Commissioner Peirce that governments could be silly to attempt to ban bitcoin? Tell us within the feedback part under.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It isn’t a direct supply or solicitation of a suggestion to purchase or promote, or a suggestion or endorsement of any merchandise, companies, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, immediately or not directly, for any injury or loss brought on or alleged to be brought on by or in reference to using or reliance on any content material, items or companies talked about on this article.