- Changed Approval Approach: SEC Commissioner Peirce stated that Ethereum ETF approval will change away from the Bitcoin ETF approval process.
- Managing Expectations: The SEC aims to avoid unnecessary hype. regulation Decisions are made by learning from past incidents, such as the X account hacking.
SEC Commissioner Hester Peirce provided insight into the approval process for the Ethereum ETF, indicating that it will not follow the same path as the Bitcoin ETF. According to Pierce, The SEC learned valuable lessons from the challenges it faced during the Bitcoin ETF approval process.
Lesson Learned: Ethereum ETFs to Face Changed Approval Process
In an interview, Commissioner Peirce emphasized that the approval process for Ethereum ETFs will undergo changes incorporating lessons learned from past experiences. Unlike the delays seen in the approval of Bitcoin ETFs, the SEC aims to consider general consumer and market factors when evaluating applications for Ethereum-based ETFs.
“There is no need for the courts to know that our approach is arbitrary and capricious,” Peirce emphasized.
New: SEC Chairman Hester Peirce says the SEC won’t repeat the same mistake with the ETH ETF after screwing up the Bitcoin ETF.
“That’s not how we give approvals… I think those kinds of lessons will definitely stick with us.pic.twitter.com/QNu52Gmr3H
— Jack Guzman (@zGuz) January 23, 2024
Complaints about Bitcoin ETF delays and X account hacking
Express your dissatisfaction with long delays Bitcoin ETF Peirce emphasized that he believed these products met approval requirements long ago. The commissioner also addressed the recent hack of Account X, acknowledging that the SEC’s heightened interest in such approvals may have played a role in the case. Peirce suggested that the situation could have been avoided if the SEC had stuck to its standard approach to ETF applications.
Expectation Management: A Key Factor in Ethereum ETF Approval
Peirce emphasized the importance of avoiding high expectations during the Ethereum ETF approval process. Through past experience, the SEC aims to manage expectations effectively to ensure a more stable market environment during the approval decision period. The Commissioner emphasized that it is not in the SEC’s best interest to make unnecessary exaggerations about regulatory decisions.
SEC Focus: Regulating Cryptocurrency-Collateralized Securities
Peirce clarified that endorsing a spot Bitcoin ETF does not mean a change in the way Bitcoin is traded. secretary Regulating cryptocurrencies, she emphasized the agency’s commitment to regulating securities products based on cryptocurrencies. The SEC’s focus is on overseeing cryptocurrency-related products traded on stock exchanges, in line with the regulatory approach of markets such as gold.