Gary Gensler Criticized SEC’s Approach to Spot Bitcoin Products
A video of Gary Gensler criticizing the United States Securities and Exchange Commission (SEC) for its inconsistent approach to spot Bitcoin products has resurfaced. The clip shows Gensler discussing blockchain regulation at the 2019 MIT Bitcoin Expo in a conversation with SEC Commissioner Hester Peirce. Gensler expressed his view that Bitcoin futures and Ethereum futures exist, but Bitcoin exchange-traded funds (ETFs) do not, which he found inconsistent. However, since then, Gensler’s stance on spot Bitcoin ETFs has changed.
Contrast with Current Views
The crypto community on Twitter pointed out the contrast between Gensler’s previous statements and his current position on spot Bitcoin ETFs. Some users remarked that Gensler is now contradicting himself. Currently, the SEC has only approved Bitcoin and Ether futures ETFs, while rejecting multiple spot Bitcoin ETF applications due to concerns about market manipulation.
Grayscale Lawsuit
Asset manager Grayscale sued the SEC after its bid to convert its existing Bitcoin trust into a spot ETF was rejected by Gensler’s SEC. A court ruled that the SEC acted arbitrarily and capriciously in rejecting the application. The SEC did not appeal the decision.
Hot Take: Gensler’s Shifting Stance on Spot Bitcoin ETFs
Gary Gensler’s past criticism of the SEC’s inconsistent approach to spot Bitcoin products has resurfaced, causing some in the crypto community to question his current views on spot Bitcoin ETFs. While Gensler previously expressed a belief in their existence, he has since rejected multiple applications for such ETFs due to concerns about market manipulation. This contrast has led to criticism and skepticism within the crypto community. The recent lawsuit against the SEC by Grayscale further highlights the contentious nature of spot Bitcoin ETF approvals. Gensler’s shifting stance raises questions about the future of spot Bitcoin ETFs and their regulation in the United States.
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