SEC Chairman Sticks To Anti-Crypto Position Despite Greenlighting Bitcoin ETF
Chairman Gary Gensler states that approving the Bitcoin spot ETF does not signify the SEC’s full endorsement of the cryptocurrency.
Statement From SEC Chairman Gary Gensler After Approving The Bitcoin Spot ETF
In the official statement following the approval of the 11 proposals for Bitcoin spot ETFs from major Wall Street players, SEC Chairman Gary Gensler stated that the agency remains impartial towards any cryptocurrency.
The primary reason for approving the Bitcoin spot ETFs stems from a decision by the Washington appeals court in August 2023, requiring the SEC to reevaluate the Grayscale proposal after its initial rejection in June 2022.
Gensler believes that, upon reconsideration, the Securities and Exchange Commission concluded that approving Bitcoin spot ETF products was the best resolution.
However, the SEC Chairman emphasizes that this should not be viewed as a change in the commission’s stance towards other cryptocurrencies. The announcement includes the following passage:
Importantly, today’s Commission action is cabined to ETPs holding one non-security commodity, bitcoin. It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities. Nor does the approval signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws or about the current state of non- compliance of certain crypto asset market participants with the federal securities laws. As I’ve said in the past, and without prejudging any one crypto asset, the vast majority of crypto assets are investment contracts and thus subject to the federal securities laws.
As compiled by CoinNerd, the SEC, in legal documents, has listed 52 cryptocurrencies as securities, including many with significant market capitalization in the crypto space.
Mr. Gensler also emphasized that the U.S. Securities and Exchange Commission does not endorse Bitcoin in any form but rather provides legal clarity for investors to engage in trading after careful consideration of associated risks.
Bitcoin spot ETFs will be listed on licensed exchanges, requiring issuers to provide comprehensive information and implement anti-fraud and manipulation measures.
Opinions Of SEC Members
SEC members have varying perspectives on the decision to approve the Bitcoin spot ETF. While Hester Pierce, a crypto-supportive member, sees it as a long-awaited move, criticizing the SEC for delayed approval, Mark Uyeda expresses concerns about certain aspects, highlighting the lack of specific laws governing the crypto space. Despite their reservations, both Pierce and Uyeda voted in favor.
On the contrary, Caroline Crenshaw voted against, citing concerns about manipulation and fraud in the Bitcoin spot market, posing risks for investors accessing this cryptocurrency through ETFs.
Member Caroline Crenshaw voted against, citing concerns about manipulation and fraud in the Bitcoin spot market, posing risks for investors accessing this cryptocurrency through ETFs.
In the final vote tally, those supporting the approval of the Bitcoin spot ETF include Chairman Gary Gensler and two members, Hester Pierce and Mark Uyeda, while those opposed include members Caroline Crenshaw and Jaime Lizárraga.
The SEC is facing pressure from U.S. lawmakers following the hacking incident of account X (Twitter) on January 10, subsequently spreading false information about the approval of a fake Bitcoin spot ETF.
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* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.
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