Benzinga - In the wake of crypto exchange Binance (CRYPTO: BNB) agreeing to a $4 billion settlement with the Justice Department, SEC Commissioner Hester Peirce has made a strong case for the approval of a spot Bitcoin (CRYPTO: BTC) ETF, saying there was "no reason" for the financial watchdog to stand in the way of its approval.
In an interview with Bloomberg, Peirce, known for her progressive stance on cryptocurrency regulations, emphasized the need for a regulatory framework that accommodates the evolving digital asset industry.
Binance's recent settlement, stemming from violations including unlicensed money transmitting and the International Emergency Economic Powers Act, has put the spotlight on regulatory actions in the cryptocurrency space.
"There is no reason for us to stand in the way of a spot Bitcoin exchange-traded product," Peirce stated, highlighting her longstanding belief in the viability of such financial products.
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She said the SEC needs to do "a better job" in providing clear guidelines that would allow companies to operate within a defined regulatory framework in the U.S.
Peirce's remarks come at a critical time when the industry is grappling with regulatory challenges.
She pointed out the necessity of a proactive approach, stating, "If you try to shut the industry out from access to all of the traditional financial rails, then you actually end up with a situation in which everyone is worse off."
The Commissioner also touched upon internal dynamics at the SEC, emphasizing her role as an advocate for realistic regulatory compliance rather than for the industry itself.
"It's one thing to say that there's been a violation. It's a whole other issue to say, here's the framework that you can comply with realistically and you can then avoid future violations," she explained.
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