SEC Chair Gensler Hints Potential Bitcoin ETF Approval; Highlights SEC's 'New Look' Post Court Rulings – Coinpedia Fintech News
In a recent exclusive interview on CNBC’s “Money Movers” aired on December 14, 2023, Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), disclosed insights into the present status of applications for the approval of a spot Bitcoin exchange-traded fund (ETF). Gensler revealed that the SEC is currently reviewing between eight to twelve applications for these ETFs.
What did Gensler Say About the ETF Approvals?
Addressing queries during the interview, Gensler emphasized his commitment to maintaining impartiality in the review process, refraining from making assumptions before the applications undergo a thorough examination. He noted the SEC’s historical denials of similar applications but highlighted recent court rulings in the District of Columbia that directed a reconsideration of the matter. This prompted the commission to reexamine the applications in light of these judicial decisions.
Responding to inquiries about market excitement following the court ruling on Grayscale, a subsidiary of Digital Currency Group, Gensler reiterated the SEC’s dedication to operating within legal frameworks and respecting court interpretations.
What are Gensler’s Main Concerns?
However, Gensler did express significant concerns during the interview regarding compliance within the cryptocurrency sphere. He pointed out issues related to securities laws, anti-money laundering regulations, and the need for protection against illicit activities within the industry. Criticizing the commingling practices observed in crypto exchanges, he highlighted activities that are not permissible within traditional financial systems.
Contrary to the perception that fraudulent activities have been eradicated from the crypto industry, Gensler staunchly disagreed, citing numerous cases, bankruptcies, and instances of malpractice. He acknowledged the challenges faced by legitimate actors operating in the crypto space due to these pervasive issues.
Update on Bitcoin ETF Applications
In a related development, Charles Adkins, former Head at APTOS and presently the President at Hedera, anticipates the simultaneous regulatory approval of multiple Bitcoin ETFs. Adkins believes that being a first-mover in this market could offer distinct advantages.
Moreover, First Trust Portfolios, L.P. has recently filed for Bitcoin Buffer ETFs under Form N1-A with the US Securities and Exchange Commission, leveraging the most recent regulatory changes.
The potential approval of spot Bitcoin ETFs appears to be on the horizon, pending thorough review and considerations by the SEC in early 2024.
Source: Read Full Article