Bitcoin ETF: There is no definite outcome, says SEC Commissioner Hester Peirce

Recently, the SEC Commissioner, Hester Peirce appeared on Crypto Trader, a  CNBC initiative hosted by the popular crypto-influencer Ran Neu-Ner. Hester spoke about behind the scenes of the Bitcoin ETF proposals.

On being asked what was the reason for the 9 Bitcoin ETF denials that came from the SEC, and which were recalled later, Hester stated:

“So what normally happens with these rule filings that exchanges file, which is how this was being considered, is that the staff will act on delegated authority, and then the SEC, the Commission which is the five of us, and now in the current status its four of us, can decide to pull up a decision that the staff made and to reconsider it at the Commission level and so that’s what happened here.”

Neu-Ner questioned Hester if it was normal for the SEC to give a denial and then recall it, Hester said that it was a fairly standard procedure for proposals like these to first go by the delegated authority and be denied.

She also mentioned that there is a certain period of time within which the Commission or one of the parties can push for recalling the decision and the same happened in this case.

Further, in the discussion, Hester stated that the SEC staff were charting out a plan on how to go about the reconsideration. However, she firmly stated that there was no definitive timeline for the 9 Bitcoin ETFs that were denied. Moreover, she said:

“There’s no definite outcome of what could happen after the reconsideration so you know people can’t can’t count down to one there’ll be a decision because it just it’s it’s pretty open-ended. “

When asked about the much awaited VanEck ETF decision due at the end of September, she stated:

“Well so again because that is ongoing I really can’t talk about that one, in the sense of where that one stands, but you know as with other rule filings of this type the staff is doing a lot of work to consider the facts and circumstances of the rule filing.”

Regarding the SEC staff putting up the decision to the Commission for a vote, Hester said that the staff had delegated authority in the particular area and could do a lot without direct input from the Commission.

Ran Neu-Ner said that the SEC is considering a radical revamp of the U.S. investor accreditation laws and the changes will make the market more inclusive and bring in more investments. He also stated that the proposed changes will help pave the way for mainstream investment into private companies and could bode well for both crypto and blockchain securities. He even quoted the SEC Chairman, Jay Clayton – “the private markets are awash with capital these days. The question is who is participating? ”

Discussing further on the same, Ran asked Hester what she thought of Chairman Clayton’s recent words around the news of accredited investors. Hester said:

“Well, I can’t really speak to what my fellow commissioners think about that topic. I will say that I think it’s an area where the accredited investors standard has served to prevent a lot of people from investing in certain segments of the market and so I think that I would like to see it broadened so that more people could invest in more types of investments. “

Moreover, in Hester’s opinion, there is no need for having an accredited investor standard. However, the Commissioner stated that if some sort of a standard were to be developed, it needs to encompass the full range of investors.

Hester also stated that she is very confident in people’s ability to make decisions for themselves whether it is in the crypto space or in a small retail store in their hometown.

She concluded by saying:

“I think it’s really presumptuous of me as a regulator to come in and say well I’ve decided that you’re not smart enough to invest in this particular type of investment. Iwould rather have a system where we let people choose, do they want to be in a protected category of investments or would they rather have full access to all kinds of investments.”

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