Former SEC Chairman’s Controversial Remarks on Cryptocurrency Regulation
Cryptocurrency investors were eagerly anticipating the approval of a spot Bitcoin ETF, but no such news came in November. While the SEC’s enhanced communication is a positive development, recent statements have once again dampened spirits.
SEC Chairman and Crypto
Securities and Exchange Commission Chairman Gary Gensler was recently confronted by journalists with questions about the approval of a spot Bitcoin ETF but did not respond. Gensler, who had stated at an event that he would not be prejudiced regarding this matter, seems to have been affected by the latest reactions.
Senior U.S. officials have reported that Gensler and his team have expressed extremely negative attitudes towards cryptocurrencies that could not be publicly stated by the agency. The institution, which rejected spot ETFs due to concerns over “price speculation, fraud, manipulation,” seemed to have overcome these concerns when approving futures ETFs.
The crypto industry is holding its breath for the agency to approve its first spot Bitcoin ETF. BlackRock believes the institution cannot find a reason to deny approval, and with the latest application received on Wednesday, there are now 13 different applications awaiting approval in queue.
When Will the Bitcoin ETF Be Approved?
The good news is that the SEC seems to be completely isolated from its previous negative stance. The relevant department of the institution is providing feedback to potential issuers. We can infer this strengthened communication from the frequent updates in the files. Gensler had stated:
“When an asset manager wants to go public with something, they need to register it with the SEC as these are exchange-traded products, and they go through a filing similar to an IPO. Therefore, it is the job of our Division of Corporation Finance to provide feedback, and of course, our Division of Trading and Markets also looks at the filings. The SEC’s Disclosure Review Team responds to them.”
Gensler also made similar remarks to his previous statements today:
“This is a field filled with bad actors, fraught with fraud, manipulation, and money laundering.”
When asked what he would say to cryptocurrency investors or those curious about crypto, Gensler advised, “Be careful, be cautious, and be aware.”
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