Securities and Exchange Commission (SEC) Commissioner Esther Pearce is concerned that the US may lag far behind other jurisdictions in adopting tradable exchange-traded funds (ETFs) for cryptocurrencies.
Speaking at The B Word online conference, Pearce expressed concern that Canada and Brazil have already approved the launch of these investment products, while the US is still “in thought.” Pearce believes that the United States regulators can go beyond their mandate, forcing local cryptocurrency firms to operate on a separate set of rules, unlike firms in other countries.
The SEC has yet to approve any applications to launch a cryptocurrency-linked ETF. The agency constantly postpones decision-making, considering how to avoid market manipulation and protect investors from fraud. According to Pearce, the regulator is acting too slowly, and such a position will lead to the fact that the United States will not only lose its leading position in the financial industry, but will also lag far behind other countries.
“The US has not given the green light to any cryptocurrency ETF, while other countries have made significant headway in this regard. I never thought that I would find myself in a similar situation. We cannot regulate values, so the SEC does not have to decide if this is good or bad for investors. Sometimes we focus too much on one investment vehicle, forgetting that investors are building a complex portfolio, ”Pierce said.
Once again criticizing the regulation of cryptocurrencies in the United States, Pearce called on the government to end pressure on the blockchain and digital currencies industry. However, despite demands to soften the stance of regulators, Pearce believes clear regulatory rules are critical to the industry’s continued prosperity without breaking the law.
Former Chairman of the Commodity Futures Trading Commission (CFTC) Timothy Massad is of the same opinion. He believes that the US should allow the launch of Bitcoin ETFs, as this will make the cryptocurrency industry more transparent.
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