SEC Chairman Gary Gensler Criticized Agency’s Approach to Bitcoin ETFs in 2019
A recently resurfaced video from 2019 has revealed SEC Chairman Gary Gensler criticizing the agency he now heads for its inconsistent approach toward spot Bitcoin ETF approvals. This revelation comes at a crucial time as debates surrounding the legitimacy and potential of cryptocurrency ETFs intensify.
Gensler’s Criticism of SEC’s Treatment of Bitcoin Futures and ETFs
In the video clip, Gensler, before becoming SEC Chairman, discusses the SEC’s treatment of Bitcoin futures and ETFs during a fireside chat with SEC commissioner Hester Peirce. He points out the inconsistency in allowing Bitcoin futures while rejecting Bitcoin ETFs.
SEC’s Stance on Spot Bitcoin ETFs
The SEC has consistently rejected spot Bitcoin ETF applications, arguing that they lack protection against market manipulation. This stance has continued under Gensler’s leadership, with the SEC denying, delaying, or pushing back recent applications.
Lawsuit Against the SEC
Grayscale’s asset manager sued the SEC after its application to convert its existing Bitcoin trust into a spot ETF was rejected. A court ruled that the SEC’s decision was arbitrary and capricious, but the agency chose not to appeal.
Criticism and Social Media Reaction
Market analysts and crypto enthusiasts have taken to social media to highlight the inconsistency between Gensler’s previous statements and his current position as SEC Chairman. This scrutiny could potentially lead to a change in the SEC’s policy approach towards crypto ETFs.
Hot Take: Possibility of Approved Bitcoin ETF
With several spot Bitcoin ETF applications currently under review, there is optimism that the U.S. may soon witness its first-ever approved Bitcoin ETF, fueled by SEC Chairman Gary Gensler’s recent comments.
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