Hester Peirce says SEC shouldn’t block spot Bitcoin ETFs, speaks on Binance resolution
The SEC was not among the U.S. agencies that settled with Binance yesterday.
Peirce said that, although she cannot comment on currently active ETF proposals, she is open to approving such a product. She said:
“I’ve been very transparent that I’ve thought for many years now that there is no reason for us to stand in the way of a spot Bitcoin exchange traded product.”
Peirce noted that each product should be judged on its unique properties but said that her agency previously received numerous applications that she saw no reason to deny. Nevertheless, the SEC has rejected several of those applications in recent years.
Peirce also alluded to a “nudge from the court” — which the interviewer presumed to be a ruling requiring the SEC to review Grayscale’s ETF application. She said that the SEC and its members will “see where things go” in light of that legal decision.
Peirce also commented broadly on the SEC’s recent legal losses. She said that though she has not observed a decrease in litigation despite those losses, enforcement is just one tool. Peirce argued for a more productive approach, adding that Congressional lawmaking and stances within the SEC itself could impact future SEC action.
Peirce briefly comments on Binance resolution
Hester Peirce briefly commented on a resolution between various U.S. agencies and Binance (and its now-former CEO, Changpeng Zhao). She could not comment in detail due to the SEC’s separate ongoing case against Binance.
However, Peirce noted that it is common for accused parties to handle criminal charges before civil charges. That is reflected in the fact that Binance settled criminal charges with the Department of Justice (DOJ) and others before the SEC’s civil securities charges. She did not directly answer the interviewer’s question, which asked whether criminal settlements could be used as a remedy in civil securities cases.
Peirce broadly stated that, in light of all current cases, regulators should aim to create a regulatory framework that allows crypto companies to operate in the U.S. She said that she hopes that this occurs in the coming months and years.