SEC's 'Crypto Mom' Proposes Game-Changing Bitcoin ETF Rule
SEC Commissioner Hester Peirce, affectionately known as the 'Crypto Mom', has proposed a significant change in the regulation of Bitcoin ETFs. Her advocacy for in-kind redemptions could reshape the U.S. cryptocurrency market and maintain the country's competitive edge in the global financial landscape.
Peirce's proposal, if implemented, would allow investors to withdraw the underlying Bitcoin asset when redeeming shares from ETFs, rather than receiving cash. This shift, known as in-kind redemptions, could boost liquidity and investor confidence in the cryptocurrency market.
The 'Crypto Mom' has been a steadfast advocate for more flexible and crypto-friendly regulations. Her latest proposal is a continuation of her efforts to foster innovation and growth in the crypto sector. Peirce has also floated the idea of creating a 'regulatory sandbox' for cryptocurrencies to encourage experimentation and development.
The new pro-crypto leadership under Donald Trump and Paul Atkins at the SEC could facilitate clearer regulations for cryptocurrencies. The U.S. is currently competing with other jurisdictions, such as Hong Kong, to become a global crypto hub. Since July 29, 2025, the SEC has allowed in-kind creations and redemptions for Bitcoin-ETFs, making them less costly and more efficient for investors.
Peirce's advocacy for in-kind redemptions in Bitcoin ETFs represents a significant step towards greater freedom and control for investors. This change could increase liquidity and investor confidence, helping the U.S. maintain its leading position in the global financial market. With the SEC's new pro-crypto leadership, clearer regulations for cryptocurrencies may be on the horizon.
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