Hester Peirce, an agent for the US Securities and Exchange Commission, says the cryptocurrency market is mature and it would be stupid for the government to ban it
SEC Commissioner Hester Peirce, popularly known as “Crypto Mom,” recently opined that the cryptocurrency market has matured due to increased institutional interest, making it foolish for the government to try to ban it.
The comments were during an interview with Barron’s that weekend. According to Peirce, the increased interest of large institutions in the mainstream financial industry in the market is the reason for the maturity of the crypto market. She added that the cryptocurrency space is now producing numerous “quasi-exchange-traded products,” a key indicator of a developing market.
Some of these quasi-exchange-traded products include investment vehicles like the Bitcoin and Ethereum trusts from Grayscale Investments, which have become extremely popular with institutional investors.
Canada’s Bitcoin ETF approval could help the US make the decision
The SEC is currently reviewing eight Bitcoin ETF applications. The proposals were submitted by VanEck Investment, WisdomTree Investment, NYDIG, Valkyrie, SkyBridge Capital, Simplify, Kryptoin and Fidelity.
The commission has previously rejected every Bitcoin ETF proposal and Peirce was asked if the situation would change this time. The commissioner said that the maturity of the market and the interest of serious investors could allay some of the SEC’s concerns about the underlying market.
Peirce pointed out that Canada has approved some Bitcoin ETFs that could help the SEC see what is going on in the market. “Recently Canada introduced some new exchange-traded products, so things like that are helpful,” she added.
The cryptocurrency market is different from other traditional financial markets, and Peirce confirmed this. She pointed out that the crypto market will never look like the stock market. Therefore, trying to apply the regulator’s current framework in assessing the viability of a Bitcoin ETF in the crypto market may not be ideal, she concluded.
Comments are closed.