On December 14, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler expressed his views on the pending spot Bitcoin ETF application.
When asked by CNBC host Sara Eisen about the likelihood of these applications being approved, Gensler responded:
“Gensler mentioned that there are eight to a dozen spot bitcoin ETF applications, some of which have been rejected in the past, but the D.C. court has weighed in. So we will revisit this depending on the court’s decision.”
Eisen noted that the ruling in question involves Grayscale Investments, which in early 2023 won the right to have the SEC review its application for a plan through which it intended to convert its GBTC fund into a spot Bitcoin ETF.
Eisen added that the market generally believes that Grayscale’s ruling could pave the way for the approval of a spot Bitcoin ETF. However, Gensler declined to comment on the possibility of approval, saying that as SEC chairman, he would not prejudge anything.
In addition to the Grayscale ruling mentioned above, the SEC’s recent meetings with several ETF applicants, as well as the amendments submitted by applicants during the comment period, have generated great optimism. Bloomberg ETF analysts Eric Balchunas and James Seyffart estimate that there is a 90% chance that the SEC will approve a spot Bitcoin ETF before January 10, 2024.
Gensler issues warning over non-compliance
Gensler also highlighted the high level of irregularities in the crypto industry, highlighting a major concern for regulators around the world. He claimed that there is “too much fraud and bad behavior in the crypto space,” noting that this includes non-compliance with securities laws, as well as non-compliance in other areas such as money laundering and public protection.
Gensler noted that his agency has settled or litigated between 150 and 175 cases involving cryptocurrencies. Gensler explained the scope of the impact, stressing:
“While this only involves a small portion of our U.S. capital markets, it can undermine confidence when so many are compromised. This is a pervasive problem in this space globally. It’s difficult for good-faith players to even succeed in the competition given the many challenges elsewhere.”
Gensler made similar comments to Bloomberg in December. Gensler noted that this is only a small portion of the U.S. capital markets, but it also makes it more difficult for serious players to compete because many of the same challenges exist globally.
In a December interview, he also highlighted regulation of the cryptocurrency market, contrasting it with the introduction of new regulations for the larger U.S. Treasury market on the same day. #Gensler #比特币ETF
