Gary Gensler Makes a Strong Declaration Regarding Cryptocurrency Following the Approval of a Bitcoin ETF

The United States Securities and Exchange Commission (SEC) has officially granted approval for all Bitcoin Spot ETFs on January 10, 2024, after a turbulent day filled with confusion. However, it should be noted that the SEC’s stance on Bitcoin and cryptocurrencies remains unchanged.

After granting approval for Grayscale Bitcoin ETFs and other issuers, SEC Chair Gary Gensler clarified the Commission’s position in an official statement. Gensler made it clear that while they approved the listing and trading of certain spot Bitcoin ETP shares, they did not endorse or approve Bitcoin itself. He urged investors to exercise caution, emphasizing the risks associated with Bitcoin and other crypto-related products.

Gensler further emphasized that the approval of spot Bitcoin ETFs should not be interpreted as an official endorsement of crypto assets by the SEC. He clarified that this decision does not indicate the Commission’s willingness to approve listing standards for crypto asset securities. Instead, it is a response to legal requirements, and he believes it is the most sustainable path forward.

However, there were dissenting voices within the SEC regarding this approval. Commissioner Caroline Crenshaw expressed concerns, stating that it could lead to a compromise in investor protection. On the other hand, Commissioner Hester Peirce saw this approval as the end of an unnecessary saga, referring to the recent judicial rebuke the SEC received over Grayscale’s application.

The SEC’s approval of spot Bitcoin ETFs has had a significant impact on the market. Initially, Bitcoin prices rallied to a 19-month high after the SEC’s compromised tweet. However, they later retraced following Gensler’s clarification. The approval has now paved the way for several prominent ETFs, including those from ARK 21Shares, Invesco Galaxy, VanEck, and others.

Tags: Bitcoin ETF