The approval of 11 spot bitcoin ETFs by the Securities and Exchange Commission (SEC) has generated a rollercoaster of events that have left a sour taste in the mouths of crypto proponents, according to SEC commissioner Hester Peirce.
Crypto traders have celebrated the historic announcement, with the SEC approving applications from major players such as Blackrock, ARK, and WisdomTree.
The surprising breakdown of the vote saw three commissioners in favor of the approval and two against. SEC chair Gary Gensler and Mark Uyeda approved the spots, along with the expected yea from bitcoin proponent Hester Peirce. Commissioners Crenshaw and Lizárraga voted against the spot bitcoin ETFs.
Hester Peirce shared strong criticism of the SEC’s approval of the ETFs, indicating that the SEC squandered opportunities and harmed its reputation by providing disparate treatment to spot bitcoin products. Peirce believes that the SEC’s arbitrary and capricious treatment will continue to harm its reputation beyond the crypto industry. The approval of spot bitcoin ETFs has created an artificial frenzy and diverted disproportionate resources from other SEC projects.
The SEC has been accused of prejudice and only made the approvals after judicial pressures. The delay in approvals was widely criticized, and the SEC’s explanation for its change of heart has been considered weak.
The SEC’s disorganization was evident in the premature announcement and subsequent deletion of approvals, which created confusion and uncertainty in the crypto community.
In his announcement, SEC chair Gensler warned investors about the risks associated with bitcoin and products tied to crypto, emphasizing that the SEC did not endorse bitcoin.
The approval of the spot bitcoin ETFs has sparked enthusiasm in the financial industry, with asset management firms and financial bigwigs expressing their support. The price of bitcoin surged 3.6% following the decision, reaching $47,120 at press time.
This historic news, however, was notably absent from the SEC’s homepage, reflecting the ongoing challenges of regulatory clarity in the crypto industry.
