SEC Chair: Operating Under Our Authorities
Gary Gensler, Chairman of the SEC, discussed the approach of the securities regulator towards spot bitcoin exchange-traded fund (ETF) applications in an interview with Bloomberg. This interview followed the SEC’s decision to expand central clearing in the Treasury market. Gensler confirmed that the SEC has been engaging with different issuers of spot bitcoin ETFs regarding their applications. When asked about the implications of this engagement, Gensler stated that the SEC responds to filings from market participants and operates within its authorities and court interpretations. He also mentioned the SEC v. Grayscale Investments case, in which a court ordered the SEC to reconsider Grayscale’s spot bitcoin ETF application after initially rejecting it.
Treasury Market as a Top Priority
Gensler emphasized the importance of the Treasury market and its significance on the regulatory agenda. With a massive scale of $26 trillion, the Treasury market plays a key role in government funding, Federal Reserve policy, and global dollar dominance. This necessitates focused attention from regulators. In contrast, Gensler pointed out that crypto securities are relatively smaller and do not fund the government or impact monetary policy in the same way. He highlighted the issue of noncompliance in the crypto market, including violations of securities laws and regulations from other agencies such as the CFTC, Treasury Department, and FinCEN.
Hot Take: SEC Chairman Affirms Approach to Spot Bitcoin ETFs
U.S. SEC Chairman Gary Gensler assured that the SEC operates within its legal authorities and considers court interpretations. In an interview with Bloomberg, Gensler stated that the SEC has been engaging with spot bitcoin ETF applicants to discuss their filings. The SEC’s actions follow a court ruling in favor of Grayscale Investments, ordering the SEC to reconsider its rejection of Grayscale’s spot bitcoin ETF application. Gensler also stressed the importance of the $26 trillion Treasury market, highlighting its role in government funding and Fed policy. He expressed concerns about compliance in the crypto market, citing violations of securities laws and regulations from multiple agencies.
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