Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), has indicated that the regulator might be reconsidering its stance on spot Bitcoin exchange-traded products (ETFs). This development follows a recent court decision involving Grayscale Investments.
During a CNBC interview on Dec. 14, Gensler addressed the numerous pending applications for spot Bitcoin ETFs. He mentioned that the SEC is currently processing “between eight and a dozen filings.” Gensler acknowledged that the SEC had previously rejected several such applications but noted that recent court rulings have influenced the agency’s approach.
When CNBC news anchor Sara Eisen inquired if Gensler was specifically referring to the Grayscale case, he did not directly answer the question. Instead, he emphasized that the SEC’s actions are guided by the laws enacted by Congress and the interpretations of these laws by the courts.
In August, a federal judge reversed the SEC’s decision to deny a spot Bitcoin ETF from Grayscale Investments through its Bitcoin Trust. This decision has sparked renewed interest among various large asset managers, including BlackRock, Fidelity, Grayscale, Invesco, VanEck, and Valkyrie, who are all vying to launch their own spot Bitcoin ETFs. While all applications have been delayed, analysts are optimistic that a collective approval might occur in early January.
In a separate interview with Bloomberg’s Kailey Leinz on the same day, Gensler avoided discussing the specific filings for spot Bitcoin products. He chose instead to focus on recent changes in the U.S. treasury market, highlighting it as a priority for the SEC.
Reacting to Gensler’s interviews, U.S. Congressman Bryan Steil criticized the SEC chair’s evasive approach to discussing cryptocurrency regulation. Steil accused Gensler of being unclear and pushing crypto businesses offshore with the SEC’s aggressive regulatory tactics.
Bloomberg ETF analyst James Seyffart also commented on Gensler’s communication style, noting his tendency to hedge his words and avoid giving straightforward answers. This observation reflects a broader sentiment among some industry observers regarding Gensler’s cautious and often non-committal public statements on crypto regulation.
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