No Reason to Stop a Spot Bitcoin ETF, SEC Commissioner Says

Vignesh Karunanidhi
No Reason to Stand in the Way of a Spot Bitcoin ETF: SEC Commissioner

In a recent conversation with Bloomberg, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce emphasized that there’s “no reason for [the SEC] to stand in the way of a spot Bitcoin ETF.”

Peirce also remained tight-lipped regarding the potential approval of a spot bitcoin exchange-traded fund (ETF).

When asked about reported ongoing conversations between ETF issuers and SEC staff regarding spot bitcoin ETF applications, Commissioner Peirce responded, “No, again, I really can’t comment on that.”

SEC’s Peirce notes that each Spot Bitcoin ETF application must be judged on its own merits

Peirce noted that each application must be judged on its own merits, but said she didn’t see reasons for denying some that have come before the SEC. “And so I think we got a little bit of a nudge from the court. And we’ll see where things go from here,” she stated.

That “nudge” seemingly refers to a recent court decision in a case involving Grayscale. A judge found the SEC was “arbitrary and capricious” in denying Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

When asked if Grayscale’s application could potentially be resolved before other spot bitcoin ETF filings, Peirce declined to speculate. He said the applications are all under consideration and she cannot speak to specific timelines.

This conversation comes just one day after the indictment of former Binance CEO Changpeng Zhao. CZ faces allegations of facilitating money laundering and sanctions violations. Zhao has since stepped down from his role. The timing suggests digital asset regulation continues to be a hot issue for U.S. authorities.