According to the statement that was made by Hester Peirce, the US Securities and Exchange Commission (SEC) commissioner, the government should cancel the limitation of the emergence of new products in the crypto market due to the reason of perceived weakness of Bitcoin.
Peirce added that the SEC force insist force markets to be subjected to strict goverment regulation. Because they want the products to be deployed on top of the markets. But, they shouldn’t take such an action.
SEC Should Only Evaulate Viability of Products Like ETS, but not Bitcoin Markets
Peirce, who is often called CryptoMom, said that SEC believed Bitcoin markets have flaws related to infrastructure. Because of that, they enforced the Winklevoss Bitcoin Trust exchange-traded fund (ETF) to be rejected.
Peirce also added that the SEC accept there is no connection between the rejection of the Winklevoss Bitcoin ETF and SEC’s according to the SEC. But, the denial of the Winklevoss ETF showed that the SEC focuses on Bitcoin markets, instead of ETF itself.
The publicly tradable instrument that was approved by the SEC won’t have a chance to hit US markets as long as the SEC doesn’t focus on the products or instruments launched on top of the markets like ETFs andit continues to establish its focus on Bitcoin and cryptocurrency markets.
SEC Accepted That Instruments Can Stabilize Market
Commissioner Peirce stated that it is very important issue that many investors currently can’t access to the cryptocurrency exchange market. They need to have a specific set of knowledge and also know how to invest in the crypto market. She added that this complexity means that only a very particular type of investors can invest in the crypto market. Developers are still on their work to improve new ways to invest so that the investors can make their investments easily.
If the reason of its concern towards cryptocurrencies as an asset class is the absence of infrastructure and stability, then the SEC has to work on providing necessary infrastructure to the top of the existing crypto markets. In this way, the market will be more accessible by the investors.