The Securities and Exchange Commission (SEC) has yet to approve a single bitcoin-based exchange-traded fund (ETF), and many representatives of the crypto space are beginning to have serious issues with this. Recently, Perianne Boring – the founder of the Digital Chamber of Commerce – delivered a new report claiming that the SEC is purely out to stop crypto in its tracks as part of a larger political agenda rather than through attempts to protect investors.
The SEC Has Not Always Been Kind to Crypto
In an interview, Boring said the SEC has turned down 16 applications from companies looking to establish bitcoin ETFs. She says this is not normal, and that the agency is simply looking to expand its control rather than help investors move ahead. Boring commented:
We detail this in the report itself, and our best guess and our conclusion is that this has little to do with the industry not being able to meet the SEC standards to bring an ETF to market, but it has a lot more to do with a larger political agenda. Chairman Gensler has a very aggressive agenda and is looking to expand the SEC’s jurisdiction and authority throughout the digital asset ecosystem, and he has laid this out in congressional testimony.
The SEC has long stated the crypto world is too volatile and speculative to take seriously. As a result, it has refused to allow crypto to be at the helm of an ETF or any other tool that is often considered a major investing tool. Boring’s report explains:
It has determined that the American public cannot yet handle the responsibility of familiar, cost-effective, liquid, transparent, and regulated access to the bitcoin markets. The SEC continues to force U.S. investors who wish to invest in this transformative asset class into unregulated or foreign alternatives.
Boring further stated that there are too many clear patterns in the thoughts and actions of the SEC, claiming in her interview:
Capturing the historical record in one place is crucial to building awareness and accountability for not only these specific denials, but the Commission’s treatment of the industry. A single denial may be viewed from one perspective, but when the SEC’s denials are viewed comprehensively, a pattern emerges that the agency must address or if they can’t address it, Congress should [act].
The Time Has Come!
She concluded with:
We detail that in the crypto conundrum, and the reason why it’s such a conundrum is really going back to those protections for the retail investors. They’ve accomplished the exact opposite of their mission, and they’re discriminating against issuers that operate in this new and innovative environment. It’s time for a spot bitcoin ETF to come to market now.
The SEC may be hard pressed for approval now that bitcoin is trading for 70 percent less than its November 2021 high.