[NEWS] SEC Chairman Gensler: "I have not approved of Bitcoin" - votes in favor of ETF approval

On the 10th, the SEC (Securities and Exchange Commission) approved the first Bitcoin spot ETF in the country's history, but afterwards, Chairman Gary Gensler issued a statement again, claiming that "Bitcoin is a volatile asset."

It was also revealed that of the five commissioners with voting rights, including Chairman Gensler, three voted in favor and two voted against the approval of the Bitcoin spot ETF. It appears that Chairman Gensler voted in favor of the approval.

Chairman Gensler once again issued a statement expressing his views. In it, he emphasized that the SEC has always followed the law.

Under his predecessor, Chairman Jay Clayton, the SEC had refused to approve the listing of more than 20 Bitcoin spot ETFs from 2018 to March 2023. However, Chairman Gensler mentioned that the ongoing lawsuit against Grayscale marked a turning point.

Grayscale requested that the Grayscale Bitcoin Trust (GBTC) be converted into an ETF, but the SEC did not approve it. However, the court ruled that the SEC's arbitrary refusal without providing Grayscale with a proper justification required a reexamination.

Chairman Gensler said he felt that "approving the listing and trading of a Bitcoin spot ETF is the most sustainable path forward" in response to this ruling.

He also emphasized that the SEC's position has always been "neutral," and said that the evaluation was based on whether it was designed to protect the interests of investors and the public, and whether it was consistent with the Securities and Exchange Act and the regulations thereunder.

Emphasized that this will not lead to the approval of other cryptocurrency spot ETFs

On the other hand, he emphasized that an important aspect of this approval is that cryptocurrency spot ETFs are currently limited to the "Bitcoin ETF." Therefore, he made it clear that this will not lead to the approval of other cryptocurrency spot ETFs. He also warned that most cryptocurrencies are investment contracts, and that "these are subject to federal securities laws."

He also explained that the reason behind the simultaneous approval of 11 applications was to create a level playing field for issuers and to benefit investors and the market.

He also called on companies offering Bitcoin spot ETFs to thoroughly comply with regulations, saying that "they must provide full, fair and truthful disclosure of their products" and that "we will strictly monitor each exchange for fraud and market manipulation."

Chairman Gensler mentioned the SEC's experience in overseeing physical ETFs of precious metals such as gold in addition to securities, and said, "This experience will be useful for Bitcoin spot ETFs."

Not Approved of Bitcoin

Chairman Gensler concluded by reiterating his own view, saying, "It should be noted that Bitcoin is a speculative and volatile asset, and that it is also used for illegal activities such as ransomware, money laundering, and terrorist financing."

He continued, "We approved a Bitcoin spot ETF, but we did not approve or recommend Bitcoin itself. Investors should continue to be aware of the various risks associated with products linked to Bitcoin and cryptocurrencies."

From his repeated warnings, Chairman Gensler himself seems to have maintained his negative stance on the approval of a Bitcoin spot ETF. Furthermore, through his statement, he seems to have suggested that the approval of the Bitcoin spot ETF this time was the result of taking into consideration court rulings and political backgrounds.

Reference:Announcement
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