- The SEC’s “crypto mother” Hester Peirce mentioned it could be silly for the US authorities to ban bitcoin.
- It is onerous to cease individuals from buying and selling digital belongings even when the federal government restricts efforts, she mentioned.
- Peirce is optimistic that the SEC’s new chairman will make a key distinction to crypto ETF approval.
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SEC commissioner Hester Peirce mentioned at a virtual event on Wednesday that the potential for a bitcoin ban has handed and governmental makes an attempt to take action can be pointless.
“I do not see how you could possibly ban it,” she mentioned at an “Investing in Crypto” occasion hosted by MarketWatch. “A authorities might say it isn’t allowed right here, however individuals would nonetheless be capable to do it,” she added, saying it could be onerous to cease anybody from buying and selling in digital belongings. “So I feel it could be a silly factor for the federal government to strive to do this.”
Peirce, who hopes 2021 will mark a turning point for crypto regulation, mentioned she wasn’t positive whether or not a bitcoin exchange-traded fund can be authorized simply but for the reason that SEC is in a interval of transition. She received the nickname “crypto mother” in 2018 after disagreeing with the SEC’s decision to reject a bitcoin ETF utility by the Winklevoss twins.
Regulatory veteran Gary Gensler’s nomination for SEC chairman was approved by the Senate Banking Committee final month. His affirmation will make a giant distinction as to if a crypto ETF will get authorized, Peirce mentioned.
Peirce thinks the US is behind the curve in regulating digital belongings compared to different international locations. However she’s optimistic about Gensler’s data of crypto, and expects to have productive conversations concerning the area with different regulators quickly sufficient.
“Our strategy has been way more of a ‘say no and inform individuals to attend’ strategy, so we have to flip that round, be prepared to work to construct a framework that’s applicable for this trade,” she mentioned.