SEC Commissioner Hester Peirce Supports Less Caution Toward ETF Innovation

Hester Peirce, the US Securities Regulatory Commissioner, advocated a less cautious approach to innovations in ETFs by regulators. The Financial Times reported on its remarks on June 2.


According to the report, Ms. Peirce from the Security and Trade Board (DIP) invited her co-commissioners to allow ETF innovations by reducing the precaution.

She reportedly commented on the DIP approach to this class of highly regulated financial derivatives, pointing out that DIP "always attracts ETFs with personal attention, as if they were children."

Mrs. Peirce also pointed out that the regulator wrongly rejected the Bitcoin-based ETF (BTC) application, which was introduced by twins Winklevoss, who are also the founders of the Gemini Cryptocurrency Exchange. According to Peirce, ETF would encourage institutional investors to participate in the cryptographic market.

State Street Advisors State Street, CEO of the third largest property manager in the world, Cyrus Taraporevala, told the Financial Times:

"If something is wrong with them, then the entire industry is painted with the same brush ... [...] We do not do inverse ETFs or ETFs." "That's when I'm in my role."


In 2010, the DIP would forbid the use of ETFs that could be used and reversed, probably because they could produce particularly large losses, notes the Financial Times. However, Peirce pointed out that other types of investment funds also used derivatives to increase their exposure, and it was clear that small investors are not the ETF's target of leveraging funding. She allegedly commented:

"The reluctance to allow more competitors to offer variable rate ETFs is another example of denying or restricting access to a product that could be beneficial to some investors."

The Financial Times also notes that the US regulator should introduce a new regulation on ETFs, which should accelerate innovation in the universe.

As Cointelegraph reported at the end of May, the Japanese Financial Services Agency also showed cautious access to ETFs based on cryptocurrencies, according to committee commentators. High in the National Diet.

Cointelegraph's recently published analysis says that a part of the cryptographic community believes Bitcoin's volatility could significantly reduce the ETF's chances based on coin approval.




Post a Comment

0 Comments