Hester Peirce, commissioner at the U.S. Securities and Exchange Commission (SEC) and the designated head of the Crypto Task Force, had some harsh words reserved for the federal agency which apparently took 10 years to approve Bitcoin Exchange Traded Funds (ETFs), calling the approval “terribly managed.”
Hester also asked the crypto community to be “patient,” claiming several parties are eagerly awaiting approval from the SEC on various crypto-related investment products and a clear regulatory framework for the industry. Hester was speaking at a podcast, “Trillions,” of Bloomberg, where she extensively spoke about her experience with the SEC.
When asked by the host whether the SEC is going to club together all the filing applications for approval, Hester replied, “I don’t know how these filings will be done, but I think one thing to remember is that the whole process (of Bitcoin ETF approval) was terribly managed.”
In January 2024, the SEC, under the President Biden administration, approved the first spot Bitcoin ETFs ending the decade-long standoff between the industry and the federal agency.
Peirce, who’s nicknamed “crypto mom”, for her support for the crypto industry, was appointed as the SEC commissioner by the President Trump administration earlier this year in January.
During the podcast, Hester described the process as “terribly mismanaged,” reiterating her earlier criticism that the SEC’s abrupt shift in stance lacked a robust explanation and alienated product innovators. Her comments underscore ongoing tensions within the agency over crypto regulation.
As per the reports, issuers have filed applications for approximately 80 crypto-focused ETPs, including unconventional proposals like Tuttle Capital’s leveraged fund tied to Melania Trump’s memecoin and REX Financial’s TRUMP-ticker fund linked to President Trump’s token.
Peirce cautioned that SEC approval does not equate to an endorsement, stressing that investors must independently assess the suitability of such products. “When something is greenlit at the SEC, it does not mean we’re telling people this is a good investment,” she said.
The U.S. agency overseeing investments, the SEC, is overwhelmed with applications for new crypto products and dealing with lawsuits. Hester Peirce stated that the agency wants to encourage new ideas in the fast-moving crypto world, but it also has to make sure that everything is legal and safe.
According to her, the situation is complicated and will require time to resolve. So, the crypto industry has to wait while the SEC carefully sorts through everything and makes its decisions.
Also Read: SEC Commissioners Promise New Crypto Rules at First Roundtable
