Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), opted not to disclose any specific plans regarding spot Bitcoin ETF (exchange-traded funds) during a recent event. This reticence comes as the SEC faces a critical decision following the court’s ruling to reverse its objection to Grayscale Investments’ application.
Gensler’s Stance on the Bitcoin ETF Issue
At a Securities Enforcement Forum event in Washington, Chairman Gensler addressed questions concerning the agency’s stance on spot bitcoin ETFs. In response, he stated that these matters are currently under review by SEC staff.
Gensler emphasized his commitment to letting the process unfold and refrained from passing judgments prematurely. The final decisions on these applications will be determined after SEC staff makes their recommendations to the five-member commission.
Uncertainty Surrounding Timing and Order
When asked about the potential timing and order in which applications would be considered, Gensler declined to provide any insights. In addition, the industry, including major financial firms like Fidelity and BlackRock, eagerly awaits clarity on how the regulator plans to approach the pending applications for spot ETFs.
Grayscale’s Court Order For Bitcoin ETF application
The outcome of Grayscale Investments’ court order, which nullified the SEC’s rejection of its bid to transform GBTC into an ETF, remains a critical development for the industry. As other prominent players in the crypto sphere closely follow the Grayscale case, it carries implications for their ETF applications as well.
Gensler also refrained from commenting on other court cases that the SEC is currently pursuing against various crypto firms. Moreover, he emphasized that he would allow each case to follow its natural course in front of the judiciary and reserved his comments on those matters.
Gensler’s Perspective on Crypto Compliance
In his speech at the event, Chairman Gensler highlighted the SEC’s enforcement efforts and took the opportunity to voice his concerns about the crypto industry. Further, he repeatedly referred to the crypto sector as “rife with non-compliance.”
However, despite the increasing prominence of crypto, he noted that the U.S. capital market exceeds $110 trillion, while the total crypto market capitalization, worldwide, is around a trillion dollars, with a smaller share in the U.S. Gensler underlined that this discrepancy underscores the relative scale of the crypto industry compared to traditional financial markets.
Gensler’s Light-Hearted Interaction
Outside the event, Gensler engaged in a friendly conversation with Zeke Faux, the author of the book “Number Go Up,” which delves into the FTX collapse. Additionally, in a playful jest common in the crypto world, Faux signed a copy for Gensler with the phrase “Have fun staying poor.”
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