SEC on Spot BTC ETF Node – Gary Gensler ‘Does Not Endorse or Support Bitcoin’

United States Securities and Exchange Commission Chairman Gary Gensler has reiterated that the agency still does not support Bitcoin (BTC) — despite 11 spot Bitcoin exchange-traded funds (ETFs) being approved on January 10.

“When we approved the listing and trading of certain Bitcoin ETP shares today, we did not approve or endorse Bitcoin,” Gensler wrote in a Jan. 10 statement, an hour after the historic approvals.

Gensler reiterated the agency's stance on cryptocurrency, comparing the “speculative” nature of Bitcoin to the use of precious metals such as gold, silver and platinum. He added that the regulator remains “due neutrality” and does not look at assets held by certain companies, investments or products that have been traded.

Despite this, Gensler notes that Bitcoin is still frequently used to settle transactions in nefarious and illegal activities. Evidence to the contrary is mounting.

Although we are neutral, ETPs in metals have both consumer and industrial uses, while Bitcoin is primarily a speculative, volatile asset that is vulnerable to illegal activities such as ransomware, money laundering, and sanctions. smuggling and terrorist financing”.

“Investors should be aware of the myriad risks associated with bitcoin and its value associated with crypto,” Gensler added.

Related: Spot Ethereum ETFs now have a direct shot at approval: Analysts

Again, Gensler reiterated the agency's opinion that “most” crypto assets are investment contracts and should fall under the regulatory jurisdiction of the SEC. In separate charges against Binance and Coinbase, the regulator listed a total of 68 crypto assets as securities.

On January 10, the securities regulator approved 19b-4 applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton.

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