SEC Commissioner Downplays Bitcoin ETF Chances in 2019 Citing ‘Arcane’ SEC Rules
Originally published on: CoinSpeaker
Read the original article
February 14, 2019
If you have been eagerly waiting for the arrival of Bitcoin ETF, maybe it’s time to lower your expectations further! On Tuesday, February 12, SEC Commissioner Hester Pierce said that she has lowered expectations for an ETF arrival. Commissioner Pierce doesn’t hesitate to note the ‘arcane rules’ of the Securities and Exchange Commission (SEC) behind this long delay.
Pierce was currently speaking at an event at the Bipartisan Policy Center. She said:
“[W]e have applications. … those are subject to a very specific time frame where we have to act within a certain amount of time, and so that’s what it’s going to depend on. And those are very arcane rules as to whether it happens or not, so I can’t speculate on the timing.”
Convincing the SEC
Pierce is popularly called as the “crypto mom” in the Bitcoin community for the cryptocurrency in the past. Unlike the traditionally conservative agency (SEC), Pierce sees a huge potential in crypto assets. Pierce has stayed quite open to the idea of crypto assets while trying to convince her colleagues. She said:
“You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto].”
During a speech last week at the University of Missouri School of Law, the crypto mom admitted that the SEC has a tendency to run away from anything related to digital currencies. She said:
“We rightfully fault investors for jumping blindly at anything labeled crypto, but at times we seem to be equally impulsive in running away from anything labeled crypto”.
Pierce also expressed willingness with SEC Commissioner and her colleague Robert J. Jackson.
I look forward to working with you @SECJackson to open the doors to innovation, but we’re not a merit regulator issuing seals of approval, so let’s encourage investors to do their own work to decide whether an investment is right for them: https://t.co/iMA7NUkLRp
— Hester Peirce (@HesterPeirce) February 7, 2019
Bitcoin ETF On the Horizon
Last week, one of Jackson’s recently held interview was leaked wherein he states that a Bitcoin ETF was on the horizon. Jackson said:
“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so. Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard, and it should be. Once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt.”
Wall Street Advisor Ric Edelman has also shown optimism saying Bitcoin ETF is “virtually certain” and “just a matter of time”. Edelman said:
“It’s virtually certain. The only question is when. The SEC has several legitimate thoughtful concerns that the industry has to overcome but I’m confident they will. Eventually, we will see a bitcoin ETF and it’s at that stage that I will be much more comfortable recommending that ordinary investors participate.”
Several analysts have said that Bitcoin ETF will prove as a catalyst to drive the next Bitcoin bull run. Bitcoin ETF could likely bring huge liquidity and capital inflow from institutional investors. However, the SEC Chairman Jay Clayton has been firm on holding up to the ETF approval until the crypto market and exchanges deal with the issues of market manipulation and hacks.