The US Securities and Exchange Commission is “taking a fresh look” at bitcoin ETF applications following October's landmark court ruling on Greyscale's application to convert the Grayscale Bitcoin Trust (GBTC) into an ETF.
Gensler said in an interview with CNBC Thursday that the regulator is reviewing “between eight and 10 records.”
“We've denied many of these applications in the past, but the courts here in the District of Columbia are weighing in on that,” Gensler said. “And so we're taking this new look based on the court decisions.”
As SEC chairman, Gensler said, “I shouldn't prejudge anything. He went on to say that the commission will work “with laws passed by Congress and how the courts interpret them.”
Gensler called the crypto space the “Wild West” to revisit the well-trodden furrows and highlighted crypto firms' “noncompliance with security rules” as well as “fraud and bad actors” in the space.
“This is a field where you still don't have basic information on these projects,” he said, “the so-called crypto exchanges are doing things that are not allowed anywhere else. In our financial system.”
SEC and Bitcoin ETFs
To date, the SEC has rejected every spot Bitcoin ETF application. But there are signs that the wind may change.
In October, the SEC was ordered to reverse Greyscale's bid to convert GBTC to its spot bitcoin ETF, after a US appeals court agreed with the firm's argument that the regulator was “arbitrary and capricious” in its ruling, similarly upheld. Structured Bitcoin Futures ETF Products.
It was subsequently revealed that the SEC was in active discussions with spot Bitcoin ETF applicants, including Greyscale, BlackRock and most recently Fidelity and Franklin Templeton. Earlier this week, BlackRock updated its filing in a meeting with the SEC, making it easier for Wall Street banks to participate in ETFs by shifting risk to crypto market makers.
All of this has contributed to a growing sense of optimism among the crypto community, where the approval of a Bitcoin ETF is imminent – something highlighted by analysts at Bloomberg and JP Morgan, both of which have a strong chance of one or more ETFs being approved. January.
However, JP Morgan does not expect permission to operate the crypto market, arguing in a recent report that the approval of the spot Bitcoin ETF will not bring new capital to the market.
Edited by Andrew Hayward.
Stay on top of crypto news, get daily updates in your inbox.
