The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has avoided answering questions about whether a spot Bitcoin ETF will be approved. Although Gensler previously stated at an event that he would not be prejudiced on the matter, it appears he is influenced by the latest reactions. The SEC has rejected spot ETFs due to concerns such as “price speculation, fraud, manipulation,” but it seems to have overcome these concerns when approving futures ETFs.
The crypto industry eagerly awaits the SEC’s approval of the first spot Bitcoin ETF. BlackRock believes the agency will not find a reason to deny approval, and as of Wednesday, there are 13 different applications awaiting approval.
It is seen as good news that the SEC is entirely isolated from its previous negative stance. The relevant department of the institution is providing feedback to potential violators. We can infer the presence of this strengthened communication from the frequent updates in the files. Gensler mentioned that when an asset manager wants to go public, they need to register with the SEC, as these are exchange-traded products and they go through a filing process similar to an IPO.
Gensler, using phrases similar to his previous statements today, said, “This area is filled with bad actors, fraught with fraud, manipulation, and money laundering.” When asked what he would tell crypto investors or those curious about crypto, Gensler advised, “Be careful, be prudent, and be aware.”