- SEC Commissioner Peirce stated there is no reason for the SEC to deny a spot Bitcoin ETF application.
- Peirce referenced a court ruling against the SEC regarding Grayscale’s Bitcoin Trust as a “nudge” for the SEC to approve spot Bitcoin ETFs.
- Peirce’s comments come amid increased regulatory scrutiny of the crypto industry, following the indictment of former Binance CEO CZ.
The U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce recently stated in a Bloomberg interview that there is no reason for the SEC to deny a spot Bitcoin exchange-traded fund (ETF).
SEC Commissioner’s Comments on Spot Bitcoin ETF Applications
When asked about reported conversations between ETF issuers and SEC staff regarding spot Bitcoin ETF applications, Commissioner Peirce declined to comment, citing she cannot discuss specific applications. However, Peirce noted that each application must be judged on its own merits. She added that she does not see reasons for denying some spot Bitcoin ETF applications that have come before the SEC.
Peirce referenced a recent court decision in a case involving Grayscale as a “nudge” for the SEC. A judge ruled that the SEC was arbitrary and capricious in denying Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. However, Peirce declined to speculate if Grayscale’s application could potentially be resolved before other filings. She reiterated that all applications are under consideration, and she cannot discuss timelines.
Regulation of Digital Assets Continues to be a Hot Issue
This conversation comes after the indictment of former Binance CEO Changpeng Zhao (CZ), who faces allegations of facilitating money laundering and sanctions violations. Zhao has since stepped down from his role. The timing suggests that digital asset regulation remains a significant focus for U.S. authorities.
In summary, while remaining tight-lipped on specific applications, SEC Commissioner Peirce emphasized there is no reason to deny a spot Bitcoin ETF, signaling openness to approving such products. However, each application will be judged on its individual merits against a backdrop of increased regulatory scrutiny of the crypto industry.
