August 6, 2018
I understand the SEC's hestitancy to prematurely approve a Bitcoin ETF. However, by delaying its legitimization, the Commission, either intentionally or unwittingly, is playing clear favorites to institutional investors over retail investors.
In the interim, the "Joe retail" crowd (myself included) will continue to be subjected to purchasing cryptocurrencies in a completely opaque, lawless marketplace full of outright manipulation and predatory behavior by deep-pocketed "whales" with nefarious (or at least greedy) intentions.
The best place to be a criminal is where there are no cops. Currently, that is precisely the predicament that exists in crypto markets - not an enviable position for the regulators I understand.
Furthermore, I recognize that the digital currency market runs counter to all precedent and established thinking in modern financial markets regulation.
In the past, markets have always been created from the top down. Digital currencies are the only financial market that materialized out of thin air at the retail level.
However, this is hardly a reason for the SEC to sit on its hands. As Commissioner Peirce correctly stated, the role of securities regulators is not to be gatekeepers of innovation but to protect investors.
Consequently, it's my strong opinion that the SEC, in conjuction with all relevant financial oversight bodies, should make it their primary focus to protect the investors who have already entered the market - not the institutions who have not.