Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has announced a significant regulatory development with the approval of Bitcoin Exchange Traded Funds (ETFs) for listing and trading. This marks a shift in the SEC’s stance towards such products, influenced by recent legal developments and changing conditions.
Gensler acknowledges the evolution of the regulatory landscape, prompted by a pivotal legal decision by the U.S. Court of Appeals for the District of Columbia, which challenged the SEC’s rationale in rejecting an ETF proposal by Grayscale. The court’s ruling led the Commission to re-evaluate its position and approve spot Bitcoin ETFs.
The Chairman emphasizes that the SEC’s decisions are grounded in adherence to laws and judicial interpretations. The approval of these ETFs reflects a commitment to legal standards while promoting a fair and competitive market environment.
Gensler reiterates the SEC’s commitment to evaluating rule applications from national securities exchanges based on consistency with the Exchange Act and relevant regulations. The Commission maintains a merit-neutral stance, avoiding positions on specific companies, investments, or ETF assets, and focuses on ensuring compliance with securities laws and equal market access for all compliant issuers.
Approved spot Bitcoin ETFs will be listed and traded on registered national securities exchanges, which are subject to stringent regulations designed to prevent fraud and manipulation. The SEC promises vigilant monitoring to enforce these rules. Existing rules and standards of conduct, including regulations and fiduciary duties, will apply to the trading of approved ETFs, encompassing broker-dealers and investment advisors who recommend these ETFs to individual investors.