SEC Commissioner Hester Peirce Criticizes Agency's Treatment of Bitcoin ETPs

According to CryptoPotato, SEC Commissioner Hester Peirce, also known as 'crypto mom,' criticized the agency's treatment of spot Bitcoin exchange-traded products (ETPs) in a recent statement. Peirce said that the SEC's approval of these products marks the end of an unnecessary saga, which could have lasted longer if not for Grayscale's court victory against the SEC last year. She accused the agency of alienating a generation of product innovators and displaying regulatory prejudice against new products and services. Peirce also pointed out that the SEC subjected crypto ETPs to more scrutiny and higher standards than comparable commodity-based ETPs, harming the agency's reputation. She added that resources were diverted from other work to analyze and reject Bitcoin ETPs repeatedly over the years. Despite the approval of spot Bitcoin ETFs setting a positive precedent for potential future approvals of other crypto ETPs, Peirce said she would not celebrate the approvals but the right of American investors to express their thoughts on Bitcoin by buying and selling spot Bitcoin ETPs. However, SEC Commissioner Caroline Crenshaw disagreed with Peirce's views, expressing deep concern about the approval of these products. Crenshaw, a former securities lawyer who joined the SEC in 2013, also expressed concern over the lack of regulatory oversight for crypto markets, product confusion, and lack of investor protection. The SEC's social media account was hacked the day before the official announcement, highlighting the agency's failure to protect investors.