Hester Peirce, Commissioner at the U.S. Securities and Exchange Commission (SEC) and the Designated Head of the Crypto Task Force, Had Some Harsh Words Reserved for the Federal Agency

Hester Peirce, commissioner at the U.S. Securities and Exchange Commission (SEC) and the designated head of the Crypto Task Force, had some harsh words

Hester Peirce, commissioner at the U.S. Securities and Exchange Commission (SEC) and the designated head of the Crypto Task Force, had some harsh words for the federal agency which took 10 years to approve Bitcoin Exchange Traded Funds (ETFs), calling the approval “terribly managed.”

Peirce also asked the crypto community to be “patient,” claiming several parties are eagerly awaiting approval from the SEC on various crypto-related investment products and a clear regulatory framework for the industry. Peirce was speaking at a podcast, “Trillions,” of Bloomberg, where she extensively spoke about her experience with the SEC.

When asked by the host whether the SEC is going to club together all the filing applications for approval, Peirce replied, “I don’t know how these filings will be done, but I think one thing to remember is that the whole process (of Bitcoin ETF approval) was terribly managed.”

In January 2024, the SEC, under the President Biden administration, approved the first spot Bitcoin ETFs, after a decade-long standoff between the industry and the federal agency.

Peirce, who’s nicknamed "crypto mom" for her support for the crypto industry, was appointed as the SEC commissioner by the President Trump administration earlier this year in January.

During the podcast, Peirce described the process as "terribly mismanaged," further detailing her earlier criticism that the SEC's abrupt shift in stance lacked a robust explanation and alienated product innovators. Her comments highlight ongoing tensions within the agency over crypto regulation.

As per the reports, issuers have filed applications for approximately 80 crypto-focused ETPs, including unconventional proposals like Tuttle Capital's leveraged fund tied to Melania Trump's memecoin and REX Financial's TRUMP-ticker fund, which is linked to President Trump's token.

Peirce cautioned that SEC approval does not equate to an endorsement, stressing that investors must independently assess the suitability of such products. "When something is greenlit at the SEC, it does not mean we’re telling people this is a good investment," she said.

The U.S. agency that manages investments is currently coping with a backlog of applications for new cryptocurrency products and several lawsuits. Peirce stated that the agency is keen on encouraging fresh ideas in the rapidly evolving crypto sphere, but they also need to ensure everything is legal and safe.

According to her, the situation is complex and will take time to sort out. So, the crypto industry will have to be patient while the SEC diligently processes everything and makes its decisions.