After months of delays and uncertainty, the US SEC has finally approved Spot Bitcoin ETFs. In response to this development, Ripple Chief Legal Officer (CLO) Stuart Alderoty has shed some light on the regulator’s sudden change of heart.
He emphasized that the United States Securities and Exchange Commission’s (SEC) approval decision was influenced by its multiple legal shortcomings in its approach to regulating the cryptocurrency industry.
Ripple CLO Claims SEC Failures Led To ETF Approval
Alderoty took to X (formerly Twitter) to proclaim that the approval of Spot Bitcoin ETFs by the US SEC was a result of the regulatory agency’s recent legal failures.
The regulatory agency announced its approval decision on Wednesday, January 10, meeting the deadline set for the SEC’s final ruling on Spot Bitcoin ETF authorization. Presently, the SEC has greenlit 11 Spot Bitcoin ETF applications, and it is anticipated that more applications will be submitted for trading in the upcoming months.
In response to a publication made by Commissioner Hester M. Pierce, Alderoty pointed out that the SEC has been recalcitrant in its efforts to regulate the crypto industry. The Ripple CLO stated that the SEC Chairman, Gary Gensler has been in a “battle royale” against cryptocurrency for years, as a result, the SEC has been transformed into a “caricature” of its own making.
Additionally, in his post, Alderoty agreed with Commissioner Pierce’s perspective on the SEC’s seemingly begrudging approval of Spot Bitcoin ETF applications. The Ripple CLO concluded that the SEC’s actions have caused it to lose the trust of the public, judges, and policymakers.
Token price begins recovery trend | Source: XRPUSD on Tradingview.com
US Commissioner Outlines SEC Shortcomings
Commissioner Pierce, in her statement made on January 10, described the long-awaited conclusion of the prolonged Spot Bitcoin ETF approval by the SEC as an “unnecessary and consequential saga.” She acknowledged that the SEC’s previous denial of Spot Bitcoin ETFs has pushed retail investors to resort to less efficient methods to obtain Bitcoin exposure in the securities market.
The Commissioner strongly emphasized the adverse consequences of the SEC’s “prejudiced” delay on Spot Bitcoin ETF applications. She revealed that the regulatory body had wasted 10 years of opportunities by denying Spot Bitcoin ETFs.
Additionally, she stated that the regulator’s “arbitrary and capricious” treatment of the submitted Bitcoin ETF applications has tarnished the agency’s reputation, leading to misconceptions about the SEC’s fundamental role among the public.
Furthermore, the Commissioner disclosed that the SEC’s previous delays in processing applications created the present unwarranted hype around Spot Bitcoin ETFs and resulted in the estrangement of innovators in the space.
Featured image from CNN.com, chart from Tradingview.com