SEC Commissioner Hester Peirce Discusses Crypto ETF Changes
Early Changes Expected Under New SEC Administration
Crypto exchange-traded funds (ETF) changes, such as in-kind redemptions and staking permission for Ethereum (ETH) products, are likely to happen “early on” under a new US Securities and Exchange Commission (SEC) administration.
SEC Commissioner Hester Peirce shared during an interview for Coinage that these matters may arrive for a regulator review as soon as Paul Atkins takes the role of chairperson. She added:
“I’m open to reconsidering both in-kind [redemptions] and staking to think about, again, how can you allow people to design the products in a way that is most useful to the investors in those products.”
Peirce, commonly known as the “Crypto Mom” due to her pro-crypto stance, also said it is “easier” to approve such changes when the majority of Commissioners want things “to go through.”
Bloomberg Analyst’s Take on Peirce’s Remarks
Bloomberg senior ETF analyst Eric Balchunas labeled Peirce’s brief remarks as “great,” highlighting her interest in making publicly traded crypto products more useful to investors.
Balchunas stated that discussions may occur regarding these changes, but the most important thing is the “SEC gods” being interested in them. As a result, the regulator will work out the legal basis for the improvements.
Accelerated Development of Crypto ETFs
Balchunas and his fellow Bloomberg ETF analyst James Seyffart predicted that new crypto ETF approvals will occur next year. Yet, the developments are happening at an accelerated pace.
The SEC recently approved the hybrid ETFs filed by Hashdex and Franklin Templeton, which will track Bitcoin (BTC) and ETH simultaneously.
Despite happening earlier than predicted by the analysts, the green light is in tandem with their prediction, which expected these products to be the first ones shipped to the market.
According to the prediction, the next ETFs to follow are Litecoin (LTC) and Hedera (HBAR). At the same time, Solana (SOL) and XRP funds might have to wait until their regulatory status becomes clearer.
Conclusion
The recent remarks by SEC Commissioner Hester Peirce suggest that changes to crypto ETFs, such as in-kind redemptions and staking permission, may be on the horizon. With the new SEC administration, these changes could happen “early on.” The accelerated development of crypto ETFs is also a positive sign for the industry, with new approvals expected in the near future.
FAQs
- What changes to crypto ETFs are expected under the new SEC administration?
- Who is SEC Commissioner Hester Peirce?
- What is the significance of Peirce’s remarks?
- What is the prediction for new crypto ETF approvals?
In-kind redemptions and staking permission for Ethereum (ETH) products are likely to happen “early on” under the new SEC administration.
SEC Commissioner Hester Peirce is commonly known as the “Crypto Mom” due to her pro-crypto stance.
Peirce’s remarks suggest that the SEC is open to reconsidering changes to crypto ETFs, making publicly traded crypto products more useful to investors.
Bloomberg analysts predict that new crypto ETF approvals will occur next year, with the first ones being hybrid ETFs tracking Bitcoin (BTC) and ETH simultaneously.
