Gary Gensler had the opportunity to launch a Bitcoin ETF somewhere, so why didn’t he?
On January 10, after a false start days earlier, the United States Securities and Exchange Commission under Chairman Gary Gensler gave the green light to the first Bitcoin (BTC) exchange-traded fund (ETF).
The SEC's decision to approve the space's first cryptocurrency investment vehicle raised questions about Gensler's interests. Since taking office, the SEC chairman has spoken several times about crypto investments, linking digital assets to fraud and scams.
However, when the SEC voted to decide on the Bitcoin ETF space, Gensler was one of three commissioners who voted to approve the offerings. Commissioners Hester Peirce and Mark Uyeda joined Gensler in voting for the ETF, while Caroline Crenshaw and Jaime Lizarraga abstained.
A 3-2 aggregate result suggested that the SEC chairman might decide. In a statement on Jan. 10 following public learning of the historic approval, Gensler continued his largely critical narrative on crypto, calling BTC a “speculative, volatile asset” and saying the commission “does not approve or support” Bitcoin despite the ETF bill. Approval.
Great to see that #Bitcoin ETFs finally got the green light from the SEC
Was Gary Gensler secretly worried after yesterday's controversy? pic.twitter.com/sYO69SF9wk
— Cointelegraph (@Cointelegraph) January 10, 2024
Cointelegraph reached out to Gensler's office but did not receive a response by the time of publication. Some online suggested that the chairman of the SEC “voted with Wall Street”, because the expansion of crypto products brings investors money. Others speculate that “the writing was already on the wall” to approve a Bitcoin ETF somewhere in the SEC, given that the commission was ordered by a federal court to evaluate the Grayscale offering.
RELATED: Critics Scream Over ‘Irregular' And ‘Historical' Spot Bitcoin ETF Approval
Grayscale won its appeal in August, with the court saying the SEC was “arbitrary and capricious” in denying the asset manager's ETF application. If the SEC decided to reject the Bitcoin ETF after the court's decision, it would have to do so for several reasons – namely market manipulation and investor protection concerns.
“If Chairman Gensler had approved ETFs years ago, it would have been easier, faster and much less painful than being forced by a court order,” Christine Smith, CEO of the Blockchain Association, told Cointelegraph. An active regulator can benefit.While it is delayed, ETF approval is welcome from the SEC.
As much hate as Gensler received leading up to the ETF vote, at the end of the day you have to admit he did the right thing https://t.co/m8ikf1xucP
— WhiteBelt (@WhiteBeltCrypto) January 11, 2024
Representatives Patrick McHenry and French Hill of the House Financial Services Committee said the SEC decision is a “significant improvement” in the commission's regulatory approach to crypto enforcement. It's unclear how the ETF's approval will affect the SEC's ongoing push for crypto companies, including Ripple, Coinbase, Kraken and Binance. In those cases, the commission said many cryptocurrencies would be considered unregistered securities.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have Final Comments?
Update (Jan. 11 at 9:30 pm UTC): This article has been updated to include a response from Blockchain Association CEO Christine Smith.
