SEC Chief Gensler's Past Comments on Bitcoin ETFs Contradict Current Stance
Summary:
A 2019 video has resurfaced, featuring current SEC chair Gary Gensler criticizing the regulatory body's inconsistent treatment of spot Bitcoin products. Gensler, currently overseeing a SEC that has denied numerous spot Bitcoin ETF applications, stated that the existence of Bitcoin and Ethereum futures but not of Bitcoin ETFs felt inconsistent. The cryptocurrency community has noticed the contrast between Gensler's views then and now. To date, only Bitcoin and Ethereum futures ETFs have been approved by the SEC. Background rejection of spot Bitcoin ETF applications has been due to said funds lacking protection for market manipulation.
Gary Gensler previously denounced the US securities regulator for its erratic treatment of spot Bitcoin (BTC) products, as per a video of Gensler from 2019 that has come to light once more. This footage features Gensler, before he took on his role at the Securities and Exchange Commission (SEC), discussing blockchain regulation at an expo hosted by MIT in 2019, and engaging in a live discussion with SEC commissioner Hester Peirce.
Gensler voiced his confusion over the existence of Bitcoin and Ethereum futures, whereas Bitcoin ETFs didn't exist, deeming the situation inconsistent. Despite the legal differences, Gensler found the rules broadly similar. His past sentiments contrast sharply with his current approach to spot Bitcoin ETFs, a fact that hasn't gone unnoticed by the cryptocurrency community online. Market analyst Zack Voell posted "Gary Gensler says Gary Gensler is wrong," highlighting the contradiction. Another user chimed in that they missed the "chill and normal Gensler."
To this point, the SEC has only given the go ahead for Bitcoin and Ethereum futures ETFs. Since 2017, the SEC has consistently knocked back spot Bitcoin ETF applications. This trend persists under Gensler's watch, with recent applications getting denied, declined, or postponed based on the claimed lack of market manipulation protection.
Grayscale, an asset manager, took Gensler's SEC to court for declining its proposal to convert its existing Bitcoin trust into a spot ETF. The court concluded that the SEC's denial was arbitrary and unreasonable. The SEC decided not to challenge this verdict.
Published At
10/30/2023 5:27:35 AM
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