Gary Gensler’s Former Critique of SEC Resurfaces
A 2019 video has emerged where Gary Gensler, now SEC Chair, appeared critical of the Securities and Exchange Commission’s approach to Bitcoin ETF approvals. Gensler, spotted at the MIT Bitcoin Expo, expressed his views during a chat with SEC commissioner Hester Peirce, highlighting what he saw as inconsistencies in the regulation of cryptocurrency products.
An Inconsistent Approach
Gensler’s remarks pointed towards an ‘inconsistent’ approach by the SEC towards the approval of spot Bitcoin products. “Bitcoin futures, and I think Ethereum futures and so forth, will exist and Bitcoin ETFs have not and that feels a little inconsistent to me,” Gensler had remarked. These statements have gained renewed attention, spotlighting a contrast with his contemporary position on the same subject.
Gensler’s Current Stance: A Shift in Perspective?
Fast forward to the present, the SEC under Gensler has been stringent, mainly focusing on the lack of market manipulation protections in spot Bitcoin ETF applications. With only Bitcoin and Ethereum futures ETFs approved till now, Gensler’s SEC has consistently delayed, denied, or deferred decisions on spot Bitcoin ETF applications.
Legal Challenges and Community Reactions
Asset manager Grayscale has challenged the SEC’s position legally, following the rejection of its application to convert its existing Bitcoin trust into a spot ETF. The legal process saw the court labeling the SEC’s decision as ‘arbitrary and capricious’. Interestingly, the crypto community has also been vocal, particularly on social platforms like Twitter, where market analysts and enthusiasts have pointed out the apparent shift in Gensler’s perspective since his pre-SEC days.
Conclusion: A Continued Dialogue
As discussions around cryptocurrency regulations continue, the reemergence of Gensler’s past views adds a fascinating dimension to the ongoing dialogue concerning the SEC’s stance on Bitcoin ETF approvals. It remains to be seen how the regulatory landscape evolves in response to the complexities of the cryptocurrency market.