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The head of the US Securities and Exchange Commission (SEC) Crypto Task Force, Hester Peirce, said the decade-long process that led to the approval of spot Bitcoin exchange-traded funds (ETFs) was mishandled, and urged crypto market participants to be patient with ongoing regulatory delays.

In an interview on Bloomberg’s Trillions podcast, Peirce addressed the slow pace of approvals for crypto-based financial products, stating that the SEC is working through litigation and internal deliberations related to digital assets. 

She added

“People have to be patient. We have some ongoing litigation we’re trying to work through. We have lots of other considerations.”

Peirce is a long-known advocate for the crypto industry, which has earned her the nickname “Crypto Mom.” She has also been a vocal critic of how the commission handled the spot Bitcoin ETF review process before its approval in January 2024.

At the time, she issued a public statement calling the process “terribly mismanaged” and said the SEC’s explanation for reversing its earlier rejections was “weak.” She added that the delays had “alienated a generation of product innovators within our space.”

ETFs don’t guarantee asset legitimacy

As of April 21, the SEC had72 ETF applications awaiting approval, including derivatives. After arecent batch of decision delays, Bloomberg ETF analysts believe the regulator will take its time until the last deadlines, which are set for October.

As regulatory discussions continue, Peirce reiterated that institutional and retail market participants must await further clarity. She added that “a lot is going on” and that the agency’s workload includes litigation and complex policy questions surrounding new financial instruments.

Notably, the SEC has been meeting with industry players and conducting roundtables to discuss various aspects of the crypto industry.

Regardless of the regulator’s decisions on these filings, Peirce clarified during the interview that SEC approval of a product does not equate to an endorsement of its investment value. 

She said:

“When something goes effective, something is green lit at the SEC, it does not mean that we’re telling people this is a good investment for anyone or for you in particular. People have to make that decision for themselves.”

The post SEC’s crypto task force lead criticizes ETF approval process, highlights need for patience appeared first on CryptoSlate.

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