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12 Interesting Crypto Thoughts From The Dissenting SEC Commissioner

As Asia (Korea, Japan, Hong Kong…) and Europe (Switzerland, Malta, Gibraltar..) work to create friendly regulatory environments for Crypto, driving innovation and investment, U.S. regulators struggle to approve the most simple of Crypto investment vehicles. The latest regulatory fail is the SEC’s decision n July 26th to deny the Winkelvoss’ bitcoin trust the ability to list and trade shares as an ETF. The majority ruling was 92 pages of equivocating drivel. What was far more interesting, was the dissenting opinion of SEC Commissioner Hester Pierce. Below are twelve thoughts from Pierce’s dissenting opinion worthy of highlighting:

Pierce’s Conclusion

By precluding approval of cryptocurrency-based ETPs for the foreseeable future, the Commission is engaging in merit regulation. Bitcoin is a new phenomenon, and its long-term viability is uncertain. It may succeed; it may fail. The Commission, however, is not well positioned to assess the likelihood of either outcome, for bitcoin or any other asset. Many investors have expressed an interest in gaining exposure to bitcoin, and a subset of these investors would prefer to gain exposure without owning bitcoin directly. An ETP based on bitcoin would offer investors indirect exposure to bitcoin through a product that trades on a regulated securities market and in a manner that eliminates some of the frictions and worries of buying and holding bitcoin directly. If we were to approve the ETP at issue here, investors could choose whether to buy it or avoid it. The Commission’s action today deprives investors of this choice. I reject the role of gatekeeper of innovation — a role very different from (and, indeed, inconsistent with) our mission of protecting investors, fostering capital formation, and facilitating fair, orderly, and efficient markets. Accordingly, I dissent.

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Lou Kerner

Believe Crypto is the biggest thing to happen in the history of mankind. Focused on community (founded the CryptoOracle Collective &CryptoMondays)