SEC Chairman Gary Gensler Hints at Shift in Stance on Bitcoin ETFs Amid Criticism
Summary:
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler hints at a possible change in the regulator's approach to spot Bitcoin exchange-traded products. Noting that the SEC is processing 8-12 applications, Gensler points out that while many were denied in the past, recent court verdicts have forced a reevaluation. Gensler's noncommital responses, especially about Grayscale, have drawn criticism for their perceived lack of clarity.
Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), has suggested that there could be a shift in the regulatory stance on spot Bitcoin exchange-traded products, following a recent court decision involving Grayscale. In an interview with CNBC on December 14, Gensler spoke about the numerous pending spot Bitcoin ETF applications, revealing that the SEC is currently processing "eight to a dozen" of them. Gensler mentioned that many of these applications had been denied in the past, but court verdicts have nudged the regulatory body to reevaluate its position.
When news presenter Sara Eisen questioned whether Gensler was alluding to Grayscale, he sidestepped the query, asserting that the SEC operates based on regulations passed by Congress and the court's interpretation of them. It's worth mentioning that a federal court in August had reversed the SEC's verdict to reject Grayscale Investment's ETF proposal through its Bitcoin Trust.
Following this reversal, several big asset management companies, including BlackRock, Fidelity, Grayscale, Invesco, VanEck, and Valkyrie, entered the competition to launch a spot Bitcoin ETF. Although every application has been held back so far, industry observers believe that mass approvals could happen early next year.
In another conversation on December 14, this time with Bloomberg's Kailey Leinz, Gensler once again danced around questions over the number of spot Bitcoin product filings, choosing instead to discuss alterations in the U.S. treasury market that have become the SEC's focal point.
Responding to the interview, U.S. Congressman Bryan Steil criticized Gensler's vague statements on crypto, accusing him of adopting an unclear approach to the topic at press conferences, similar to his evasive responses during committee hearings. He criticized the SEC's aggressive regulatory strategy that, he said, was pushing cryptocurrencies to flee the U.S. Echoing these sentiments, Bloomberg ETF analyst James Seyffart mused that Gensler was skilled at carefully parsing his words without giving a definitive answer.
Published At
12/15/2023 7:38:11 AM
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