What are the arguments made by Hester Peirce against the Bitcoin ETF?

3 answers

• Dec 25, 2021 · 3 years ago
  Hester Peirce argues that the Bitcoin market is still prone to manipulation and lacks sufficient investor protection. She believes that the current regulatory framework is not equipped to handle the unique characteristics of cryptocurrencies, making it risky to introduce a Bitcoin ETF at this time. According to Peirce, the lack of surveillance and oversight in the Bitcoin market could lead to potential market manipulation and fraud, which could harm retail investors. She emphasizes the need for robust market surveillance and investor protection measures before considering the approval of a Bitcoin ETF.
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• Dec 25, 2021 · 3 years ago
  In her arguments against the Bitcoin ETF, Hester Peirce also highlights the potential for price manipulation in the Bitcoin market. She points out that the lack of regulated exchanges and the presence of unregulated trading platforms make it difficult to ensure fair and transparent trading. Peirce believes that the current state of the Bitcoin market is not mature enough to support an ETF, as it could expose investors to significant risks and volatility. She suggests that further development and regulation of the Bitcoin market are necessary before considering the approval of a Bitcoin ETF.
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• Dec 25, 2021 · 3 years ago
  As a commissioner at the U.S. Securities and Exchange Commission (SEC), Hester Peirce has expressed her concerns about the potential impact of a Bitcoin ETF on market stability. She argues that the introduction of a Bitcoin ETF could lead to increased correlation between Bitcoin and traditional financial markets, which could pose systemic risks. Peirce believes that the SEC should carefully consider the potential consequences of approving a Bitcoin ETF and ensure that the market infrastructure is robust enough to handle the potential influx of institutional investors. She emphasizes the importance of maintaining market stability and preventing any adverse effects on the broader financial system.
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