Key Takeaways
- Gensler's remarks suggest a potential reevaluation of the SEC's stance on Bitcoin ETFs following Grayscale's legal victory;
- The SEC is currently reviewing multiple spot Bitcoin ETF applications, with past denials possibly being reconsidered based on recent court rulings;
- While not confirming a policy change outright, Gensler's statements have generated discussions and concerns within the cryptocurrency community and among experts.
Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has suggested a potential shift in the SEC's stance on Bitcoin exchange-traded funds (ETFs) following a recent legal win for Grayscale.
Although he did not explicitly state a change in policy, his remarks hint at a possible reevaluation.
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During an interview with CNBC on December 14th, Gensler acknowledged that the SEC is currently processing "between eight and a dozen filings" for spot Bitcoin ETFs.
He admitted that the SEC had previously denied some of these applications but indicated that recent court decisions might lead to a different approach, stating:
So we’re taking a new look at this based upon those court rulings.
When asked if he was referring to the Grayscale case, Gensler evaded a direct response and emphasized that the SEC operates within the framework of congressional laws and court interpretations.
In a separate interview with Bloomberg on the same day, Gensler also shifted the conversation away from the number of spot Bitcoin ETF filings and instead highlighted the SEC's focus on recent changes in the U.S. treasury market as a top priority.
These comments have prompted discussions and criticism, with U.S. Representative Bryan Steil expressing concerns about the SEC's aggressive regulatory approach and its potential impact on pushing crypto activities offshore.
In August, a federal judge ruled in favor of Grayscale Investments, overturning the SEC's prior denial of their ETF proposal linked to their Bitcoin trust.
This decision has paved the way for various well-known asset management companies, such as BlackRock, Fidelity, Invesco, VanEck, Valkyrie, and others, to actively seek approval for spot Bitcoin ETFs.
Despite encountering delays in the approval process, there is growing speculation among industry analysts that a batch approval for these ETFs may occur as early as January 2024.
