Spot Bitcoin ETFs Approved by SEC Chairman Gary Gensler
When the Securities and Exchange Commission (SEC) approved Spot Bitcoin ETFs for public trading, chairman Gary Gensler cast the deciding vote. Gensler’s decision to change his stance on such products seems to be driven by legal circumstances.
Gensler referenced the SEC’s court loss to Grayscale in August, where the agency failed to adequately explain its reasoning for rejecting an ETF application. In a statement, Gensler stated that “circumstances have changed” and that approving spot Bitcoin ETP shares is the most sustainable path forward.
The chairman emphasized that the SEC acts within the law and how the courts interpret it. However, he also made it clear that approving Bitcoin ETFs does not indicate a willingness to approve listing standards for crypto asset securities.
Gensler’s Criticism of Bitcoin
Gensler did not spare even Bitcoin from his criticism. Although he labeled it a “non-security commodity,” he highlighted numerous risks associated with investing in it.
Gensler argued that while metals have consumer and industrial uses, Bitcoin is primarily a speculative and volatile asset used for illicit activities like ransomware, money laundering, sanction evasion, and terrorist financing.
His criticisms align with fellow Democrats who advocate for strict controls on blockchain software users and their financial activities. However, some crypto-supportive politicians from across the aisle praised Gensler’s approval of Bitcoin ETFs as a historic milestone for the industry.
Hot Take: Unraveling Gensler’s Strategy Behind Allowing Spot Bitcoin ETFs
SEC Chairman Gary Gensler’s decision to approve Spot Bitcoin ETFs signifies a significant shift in his stance on cryptocurrency products. While legal circumstances played a role in his change of heart, Gensler’s approval does not indicate a broader reform of the SEC’s pessimistic view on the crypto industry.
Gensler continues to criticize Bitcoin, highlighting its speculative nature and associated risks. Despite this, his decision received support from both sides of the political spectrum, with some politicians considering it a historic milestone for the crypto industry.
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