Gary Gensler Clarifies SEC Did Not Give Its Endorsement To Bitcoin Through Spot BTC ETF Approval

Despite approving multiple spot Bitcoin ETFs, Gensler cautions that his agency continues to withhold support for Bitcoin.

Despite approving 11 spot Bitcoin ETFs on Jan. 10, United States Securities and Exchange Commission Chair Gary Gensler has reiterated that his agency still does not endorse Bitcoin, with tickers down $46,204.

“While we approved the listing and trading of certain spot Bitcoin ETP shares today, we did not approve or endorse Bitcoin,” Gensler wrote in a Jan. 10 statement, just an hour after the historic approvals came through.

Gensler reaffirmed his agency’s position on the cryptocurrency, emphasizing Bitcoin’s “speculative” nature compared to the utility of precious metals like gold, silver, and platinum. He clarified the regulator’s “merit-neutral” stance, refraining from endorsing specific companies, investments, or underlying assets of exchange-traded products.

Nevertheless, Gensler specifically noted that Bitcoin is often employed for transactions associated with nefarious and illicit activities, despite accumulating evidence to the contrary.

“Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” Gensler added. 

Once again, Gensler reiterated his agency’s stance that the “vast majority” of crypto assets are considered investment contracts, falling within the SEC’s regulatory purview. In separate lawsuits against Binance and Coinbase, the regulator identified 68 crypto assets it deems as securities.

On Jan. 10, the securities regulator greenlit 19b-4 applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton.

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