Hester Pierce – the commissioner of the Securities and Exchange Commission (SEC) – says that she hopes the U.S. government is not stupid enough to try and ban bitcoin activity, as there is no way it could ever stop people from trading it or being involved.
Hester Pierce: The Government Can’t Be This Naive
Pierce is often dubbed the “Crypto Mom” given her loose stance on cryptocurrency regulation. She believes that many digital assets are legitimate methods of finance, and that they will become cemented in the monetary space within coming years. She also feels that the U.S. has been rather slow in its adoption rate and hopes things will change to ensure America remains on top as a financial innovator.
In a recent interview, Pierce states:
I don’t see how you could ban it. A government could say it’s not allowed here, but people would still be able to do it, so I think it would be a foolish thing for the government to try to do that.
Not too long ago, Pierce shocked traders when she commented that the SEC had potentially made a mistake in the past by being so evasive when it came to approving a bitcoin or cryptocurrency-based exchange-traded fund (ETF). This kind of evasiveness has prevented the United States from remaining fully competitive in the financial market.
Its neighbor to the north Canada has since pulled back the curtain on two separate bitcoin ETFs and an Ethereum-based one. In addition, several countries in Europe have been delving in products similar with crypto ETFs for years.
For the most part, she is hoping that 2021 really allows the country to come forward and find its place in the crypto trading world. She says that one of the primary ways to do that is by cementing appropriate regulation that ultimately protects traders and investors while at the same time permitting further innovation within the crypto space.
We Need to Be Innovative and Open
She is hopeful that doors will begin to open now that Gary Gensler has been nominated for the role of SEC chairman. Given his allegedly strong regulatory background and his knowledge of the digital space, she thinks now may be the time when crypto fans begin to witness further crypto products – such as an ETF – come to light. She says:
Our approach has been much more of a ‘say no and tell people to wait’ approach, so we need to turn that around, be willing to work to build a framework that is appropriate for this industry.
Many companies now feel that a bitcoin ETF may be right around the corner. One company – Grayscale – is so confident in this idea that it has recently put out LinkedIn ads looking for potential teammates who can step on board and serve in its new crypto ETF division despite no greenlight being given to a crypto ETF just yet.