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US SEC “Crypto Mama”, What is the impact of the new secretary on cryptocurrency regulation?

Cryptocurrency

Expectations for the new Secretary of the SEC, “Crypto Mama”

Hester Peirce, one of the US SEC (Securities and Exchange Commission) commissioners, expressed his hopes on the policy regarding crypto asset (virtual currency) regulation of the new Secretary of State Gensler, who took office in April on the 29th.

Secretary Gary Gensler was just approved by a US Senate vote in April. In recent years, since he taught Bitcoin at the Massachusetts Institute of Technology (MIT), his understanding of cryptocurrencies is often taken up, but under the Obama administration, he recommended the approval of the Dodd-Frank Act as the CFTC Secretary. There is also a strict aspect to investor protection.

Relation:U.S. SEC, Gensler to become new secretary

At the Monetary and Financial Institutions Forum meeting on April 29, Peirce said Gensler’s appointment as Secretary would make the SEC “very productive” over the next few years. ..

He, like other SEC Secretaries, expects to take investors and investor protection seriously.

But at the same time, he understands the value of a good, clear regulatory framework.

Peirce became SEC Commissioner in 2018. Since publishing a positive paper on Bitcoin ETP, he has been positive about “technological innovation” such as DeFi (decentralized finance) and NFT (non-fungible token) utilizing virtual currency and blockchain technology. It has been popular with the cryptocurrency community as “Crypto Mama”.

Relation: US SEC Crypto Mama talks about the appeal and challenges of DeFi (decentralized finance)

Impact on Bitcoin ETFs

Peirce also explained that past debates could rekindle when a new secretary takes office. In the discussion of Bitcoin ETFs, we suggested that the case of Bitcoin ETF approval in Canada and the development of the Bitcoin futures market may indicate the maturity of the market.

Currently, nine Bitcoin ETF applications have been submitted to the SEC, and even if the decision is postponed by a maximum of (240 days), at least one will reach the deadline by the end of the year, and Secretary Gensler Expectations are rising for changes after the transition.

Relation:Bitcoin ETF (Exchange Traded Fund) Latest Information Summary

For this reason, there are many voices expecting Bitcoin ETF approval by the end of the year, but Chairman Peirce showed a cautious stance.

I can’t guess when. Some days I think it’s 10 years from now, and some days I think it might be this year, but I don’t really know.

Private meeting on May 6th

On April 29, the SEC announced that it would hold a private meeting based on US law. It was disclosed on May 6 that the SEC Secretary and Commissioner would attend and that the meeting would proceed on the following agenda items:

  • Raising and resolving injunctions
  • Filing and resolving administrative litigation
  • Resolution of proceedings
  • Matters concerning other examination / execution procedures

The SEC has filed a lawsuit with Ripple over the sale of the virtual currency XRP (Ripple), and it is believed that the matter will be mentioned at a private meeting of the SEC.

Relation:Progress of Ripple’s trial filed by the US SEC and summary of future schedule

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Author: Noah Sakamaki
Reference: The Block

Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”

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