SEC Chair Gary Gensler on Spot Bitcoin ETFs
Securities and Exchange Commission Chair Gary Gensler recently spoke at a conference where he addressed the future of spot Bitcoin ETFs. When asked if the SEC would take any action soon regarding the matter, Gensler stated that he would not “pre-judge” it.
Gensler’s Position on Bitcoin
Gensler reiterated his belief that Bitcoin is a commodity during the conference. However, he also expressed concerns about the overall state of the crypto industry, stating that it is filled with bad actors, fraud, manipulation, and money laundering.
Asset Managers Waiting for Approval
Several asset managers, including BlackRock and Fidelity, have been eagerly waiting for the SEC to approve the first spot Bitcoin ETF. However, all applications have faced delays so far.
Gensler Supports Increased Authority for CFTC
Gensler showed support for granting additional authority to the Commodity Futures Trading Commission (CFTC) to supervise cryptocurrencies. He specifically mentioned the necessity of increased authority surrounding Bitcoin.
SEC’s Review Process
Gensler described the SEC’s review process as a “time-tested process.” He explained that exchange-traded products seeking public registration need to go through a filing process similar to an IPO. The SEC’s staff provides feedback and guidance to potential issuers.
New Discussions with Asset Managers
The SEC recently engaged in discussions with Invesco and BlackRock to address concerns related to “balance sheet impacts and risks” associated with spot Bitcoin ETFs. Meetings with Grayscale and BlackRock were also held last week.
Gensler’s Stance on Cryptocurrencies
Gensler, a former chair of the CFTC, has previously argued that many cryptocurrencies should be classified as securities. He compared the lack of compliance in the crypto industry to the conditions of the 1920s before federal securities laws were implemented.
Hot Take: Gensler’s Cautionary Words on Crypto
During his conference speech, Gensler expressed caution about the crypto industry and its potential risks. He highlighted concerns about bad actors, fraud, manipulation, and money laundering. Gensler’s remarks reiterate his stance that Bitcoin is a commodity while emphasizing the need for regulatory oversight and increased authority for agencies like the CFTC. The SEC continues to review spot Bitcoin ETF applications from asset managers like BlackRock and Fidelity. The future of these ETFs remains uncertain, and Gensler did not provide any specific details or timelines regarding potential action from the SEC.
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