Gensler’s Comment Suggests That SEC’s Hands Are Tied
In a recent interview with CNBC, Securities and Exchange Commission (SEC) Chair Gary Gensler mentioned that the Commission is taking a “new look” at the pending Spot Bitcoin ETF applications. This suggests that the SEC may be reconsidering its stance on these applications due to a court decision in the Grayscale case. The court’s ruling stated that the spot and futures market are correlated, forcing the SEC to reassess its rejection of similar applications based on fraud and manipulation concerns.
Gensler also expressed his reservations about the crypto industry, highlighting noncompliance with securities laws and the presence of fraud and bad actors. However, there is optimism among those hoping for a Spot Bitcoin ETF approval in January, as Gensler indicated that these applications are currently undergoing a process. Recent developments, including meetings between issuers and SEC divisions, suggest increased openness to approval with strict compliance.
BlackRock Meets With The SEC For The Fourth Time For Bitcoin ETF
Bloomberg analyst Eric Balchunas reported that BlackRock, the world’s asset manager, recently met with the SEC regarding its Spot Bitcoin ETF application. This meeting involved public policy staff from BlackRock meeting with Gensler’s staff. It is believed that the discussion focused on BlackRock’s preference for an in-kind model rather than a cash-creation model for the ETF. The SEC seems to favor the latter and is seeking compliance from all issuers of Spot Bitcoin ETFs.
There are indications that the SEC may only approve applications that adhere to this requirement. These ongoing discussions between BlackRock and the SEC demonstrate increasing efforts to reach a consensus on ETF approval.
Hot Take: Optimism Rises as SEC Reconsiders Spot Bitcoin ETF Applications
The recent comments from SEC Chair Gary Gensler regarding the reevaluation of Spot Bitcoin ETF applications suggest a potential shift in the SEC’s approach to crypto regulation. While Gensler expressed reservations about the industry, the court’s ruling in the Grayscale case has compelled the SEC to review its stance on these applications. This has generated optimism among those hoping for a Spot Bitcoin ETF approval in January.
Furthermore, meetings between issuers and SEC divisions, including BlackRock’s recent engagement, indicate a willingness to discuss compliance requirements. The SEC’s emphasis on an in-kind model for ETFs may influence future approvals. Overall, these developments signal progress in the regulatory landscape and contribute to a more positive outlook for the potential approval of Spot Bitcoin ETFs.
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