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US SEC Shoots Down Latest Bitcoin ETF, Commissioner Crypto-Mom Dissents on Ruling

The US Securities and Exchange Commission (SEC) has rejected yet another bid for a bitcoin-based exchange-traded fund (ETF), this time from New York-based financial service providers, Wilshire Phoenix.

A filing posted on Feb. 26 revealed that the SEC had concluded that Wilshire Phoenix had not provided enough evidence that the bitcoin market was resistant to market manipulation.

As stated in the filing,“The Commission concludes that NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.

Wilshire Phoenix, an emerging asset management firm and partner to Coinbase Custody,first applied for the ETF last summerwith NYSE Arca.

SEC Commissioner Dissents on Ruling

Peirce highlighted parameters that were set and heavily scrutinized in the SEC’s processing and ultimate rejection of Bitwise’s Bitcoin ETF application,that had not been applied to traditional markets offering.

Peirce wrote, “This line of disapprovals leads me to conclude that this Commission is unwilling to approve the listing of any product that would provide access to the market for bitcoin and that no filing will meet the ever-shifting standards that this Commission insists on applying to bitcoin-related products—and only to bitcoin-related products.”

The SEC has rejected all previous bitcoin ETF proposals filed to date.

Crypto Mom Wants Safe Harbor

Despite well-documented uncertainty between separate regulatory bodies on how to classify digital assets, within the US blockchain and crypto space, the SEC has maintained that digital assets likely fall under US securities laws. The SEC has punctuated this stance through enforcement against high profile projects like Telegram and EOS provider, Block.One who was fined 24 million dollars for its ICO offering.

SEC Commissioner, Hester Peirce has been a breath of fresh air to the sector and has earned the moniker of “Crypto-Mom” for her bold attitude towards digital innovation.

As reported by Blockchain.News, Peirce recently doubled down on her previous suggestion to provide decentralized network developers a safe harbor and has now submitted a formal draft proposal.

The safe harbor proposal recommends that a three-year reprieve from securities law should be granted to developers and projects that can demonstrate they are raising funds and making progress towards an open-source network. These projects will be required to make full disclosures regarding their raised funds to the public.

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Trump Nominates SEC Commissioner Hester Peirce For Second Term

Crypto Mom, Hester Peirce has been nominated for a second term with the US Securities and Exchange Commission (SEC) as one of its five commissioners.

Peirce has proved to be somewhat of an ally of Bitcoin and blockchain projects that come before the US SEC regulatory body. She took office in January 2018 and received a nomination to finish the last two years of her term from US President Donald Trump. Peirce was originally nominated by former President Obama in 2015 to fill a Republican seat, without Trump’s second nomination her term would have ended on June 5.

According to Bloomberg Law, Peirce has now been nominated for a new term that could see her remain as a SEC Commissioner until 2025.

A Harbour in Regulatory Tempest

SEC Commissioner, Hester Peirce has been a breath of fresh air to the sector and has earned the moniker of “Crypto-Mom” for her bold attitude towards digital innovation.

As reported by Blockchain.News, Peirce recently doubled down on her previous suggestion to provide decentralized network developers a safe harbor and even submitted a formal draft proposal.

The safe harbor proposal recommended that a three-year reprieve from securities law should be granted to developers and projects that can demonstrate they are raising funds and making progress towards an open-source network.

Crypto Mom: A Leader Not a Follower

Peirce earned the nickname of ‘Crypto Mom’ when she spoke out and highlighted parameters that were set and heavily scrutinized in the SEC’s processing and ultimate rejection of Bitwise’s Bitcoin ETF application. Peirce argued that the standards that Bitcoin ETF’s are subjected to have never been applied to traditional markets offering.

SEC Commissioner Hester Peirce wrote that “the Commission applies a unique, heightened standard under Exchange Act Section 6(b) to rule filings related to digital assets” in a dissenting statement in response to the Bitcoin ETF rejection.Peirce wrote, “This line of disapprovals leads me to conclude that this Commission is unwilling to approve the listing of any product that would provide access to the market for bitcoin and that no filing will meet the ever-shifting standards that this Commission insists on applying to bitcoin-related products—and only to bitcoin-related products.”

Peirce is yet to make any official comment on her recent nomination.

SEC Commissioner Hester Peirce Confirmed for Second Term By US Senate, Crypto Mom Will Remain Until 2025

The United States Senate has voted in Commissioner Hester Peirce of the Securities and Exchange Commission for a second term that will see her remain with the regulator until 2025.

The US Senate has confirmed Securities and Exchange Commission (SEC) commissioner Hester Peirce, renewing her position for a second term via a voice vote on Aug 5.

Peirce who has earned the name ‘Crypto-Mom’ for her pragmatic and reasoned approach to dealing with digital innovation projects brought before the SEC was voted in alongside Caroline Crenshaw.

Commissioner Peirce first took office in January 2018 and received a nomination to finish the last two years of her term from US President Donald Trump. Peirce was originally nominated by former President Obama in 2015 to fill a Republican seat, without Trump’s second nomination her term would have ended on June 5.

SEC Commissioner Peirce’s second term will expire in 2025.

Crypto Mom: Voice of Reason in the SEC

Peirce earned the nickname of ‘Crypto Mom’ when she first proposed a safe harbor for digital token projects as the SEC regulating authority had become increasingly prejudiced towards cryptocurrency and blockchain-related project.

According to Commissioner Peirce’s safe harbor proposal, a three-year reprieve from securities law should be granted to developers and projects that can demonstrate they are raising funds and making progress towards an open-source network. These projects will be required to make full disclosures regarding their raised funds to the public.

Peirce highlighted that the benefits would allow developers to fundraise, investors to access more detailed project information and innovations in this emerging technology would stay in the US.

SEC Commissioner Peirce made further headlines in the cryptosphere when she spoke out and highlighted parameters that were set and heavily scrutinized in the SEC’s processing and ultimate rejection of Bitwise’s Bitcoin ETF application. Peirce argued that the standards that Bitcoin ETF’s are subjected to have never been applied to traditional markets offering.

SEC Commissioner Hester Peirce wrote that “the Commission applies a unique, heightened standard under Exchange Act Section 6(b) to rule filings related to digital assets” in a dissenting statement in response to the Bitcoin ETF rejection. Peirce wrote, “This line of disapprovals leads me to conclude that this Commission is unwilling to approve the listing of any product that would provide access to the market for bitcoin and that no filing will meet the ever-shifting standards that this Commission insists on applying to bitcoin-related products—and only to bitcoin-related products.”

During a recent appearance, Peirce was also incredibly critical of the SEC’s handling of Telegram’s TON network, which she believed was a waste of resources and ultimately helped no one.

Peirce Will Likely Continue Advocating for Innovation

Securities and Exchange Commissioner Hester Peirce has shown no signs of pulling out of her advocacy role for digital projects.

Last month on July 7, Peirce spoke at the Unitize Virtual Conference and advocated for a clear regulatory framework for crypto projects to foster innovation in the capital markets. Peirce said, “I wanted to make sure that our regulatory structure was flexible enough to accommodate innovation.”

Alluding to her previous safe harbor proposal Peirce highlighted that the benefits of clear regulation would allow developers to fundraise, investors to access more detailed project information, and innovations in these emerging technologies would stay in the US.

The exodus of tech talent from the US to Asia and Europe has been well documented and Peirce believes that’s “all the more reason for a jurisdiction like the United States to try to develop a workable framework that allows people to come and avail themselves of our market.”

While Peirce wants to see the US Government be more proactive in cutting through the regulatory uncertainty for crypto and blockchain, she also highlighted that innovation rarely comes from the public sector.

Peirce said, “Remember that innovation typically comes from outside the government sector. We need to set up a framework that allows people who spend a lot of time thinking about new ideas to continue to spend time thinking about those ideas and not a lot of time worrying about complying with regulations.”