SEC Chairman Proposes Re-evaluation of Bitcoin ETF
Key Takeaways
- Gensler’s comments signal a potential reevaluation of the SEC’s stance on Bitcoin ETFs following Grayscale’s legal victory.
- The SEC is currently reviewing several spot Bitcoin ETF applications, with past rejections likely to be reexamined following recent court rulings.
- While not outright confirming the policy change, Gensler’s comments sparked discussion and concern among the cryptocurrency community and experts.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler made the following suggestion: The SEC’s stance on Bitcoin exchange-traded funds (ETFs) may change following Grayscale’s recent legal victory..
Although he did not explicitly state a change in policy, his remarks hinted at a possible reevaluation.
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In a December 14 interview with CNBC, Gensler admitted: The SEC is currently processing “eight to 12 filings” for spot Bitcoin ETFs..
He acknowledged that the SEC has previously rejected some of these applications, but indicated that recent court decisions may lead to a different approach:
So we are taking a fresh look at this issue based on these court rulings.
When asked if he was referring to a grayscale incident, Gensler declined to respond directly. And he emphasized that the SEC operates within a framework of laws of Congress and court interpretation.
In a separate interview with Bloomberg on the same day, Gensler also shifted the focus of the conversation away from the number of spot Bitcoin ETF filings. Instead, it highlighted the SEC’s focus on recent changes in the U.S. Treasury market as a top priority.
These comments sparked debate and criticism, with U.S. Representative Brian Steele saying: Concerns about the SEC’s aggressive regulatory approach Potential impact on driving cryptocurrency activities overseas.
In August, a federal judge ruled in favor of Grayscale Investments.Overturned the SEC’s previous rejection of a proposed ETF involving a Bitcoin trust.
This decision paved the way for a variety of high-profile asset managers, including: black stone, fidelity, Invesco, Van Eck, valkyrieand other spot Bitcoin ETFs are actively seeking approval.
Despite delays in the approval process, speculation is growing among industry analysts. Batch approval for these ETFs could come as early as January 2024..
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