U.S. SEC commissioner calls for “Freedom of Choice” before VanEck Bitcoin ETF decision
There is a sense of anticipation among the cryptocurrency community as the U.S. Securities and Exchange Commission (SEC) gets ready to make its final decision on the VanEck/SolidX Bitcoin ETF proposal on September 30, which might be the first-ever bitcoin ETF.
The U.S. Securities and Exchange Commission is run by its chairman, Jay Clayton, who has taken a measured and cautious approach so far towards regulating cryptocurrencies.
The Winklevoss review was voted on by Chairman Clayton, two Democrats, and a Republican, resulting in a 3–1 denial.
Speaking to Ran Neu-Ner on CNBC’s Crypto Trader, SEC Commissioner Hester Peirce explained why she believes the SEC should prioritize a key American principle: freedom of choice.
SEC has deliberated on a number of Bitcoin ETF proposals recently and has rejected or delayed those citing caution and security concerns for the investors. Peirce, who issued her dissent over the Commission’s decision to reject the Winklevoss Bitcoin ETF proposal in July, criticized what she called “merit regulation” and gatekeeping.
Pierce had shown her displeasure over the rejection of Winklevoss Bitcoin proposal in July. She wrote:
“I respectfully dissent from the Commission’s order disapproving a proposed rule change, as amended, to list and trade shares of the Winklevoss Bitcoin Trust on Bats BZX Exchange, Inc.”
“In addition, I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market. More institutional participation would ameliorate many of the Commission’s concerns with the Bitcoin market that underlie its disapproval order,” she added.
‘We should give people the choice to make their own decisions’
Speaking just weeks before the US regulator is expected to make its final decision on the VanEck/SolidX Bitcoin ETF proposal on September 30, Peirce made her concerns open. She said:
“There is a real value to having freedom of choice to make your own decisions. And that’s sort of the fundamental principle of what our country operates on, which is that people can make decisions and act in ways that they think are wise for their own lives.
It’s very difficult for me as a regulator to know what might work for an investor out in the middle of the country. I think, ‘Well, I can make a better decision than someone in the middle of the country.’ That’s ridiculous.”
Ran Neu-Ner also said that the SEC is considering a total revamp of the U.S. investor accreditation laws and the changes will make the market more inclusive. He quoted the SEC Chairman, Jay Clayton – “the private markets are awash with capital these days. The question is who is participating? ”
Peirce also explained why she believes that the SEC should get rid of accredited investor laws:
“The accredited investor 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. I don’t actually think there’s a good reason to have an accredited investor standard at all. But I’m also a realist. And so given that we’re going to have an accredited investor standard of some kind, I think we need to take another look at it and see whether it encompasses the full range of investors who should be able to invest in private offerings.”
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