U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler stressed in a statement that the agency did not promote or advocate bitcoin by allowing spot bitcoin exchange-traded funds (ETFs), despite the euphoria around their approval. "Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto," Gensler warned, maintaining that the majority of crypto assets are securities.
SEC Chair Gary Gensler’s Statement About Bitcoin Following Spot Bitcoin ETF Approvals
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler released a statement outlining the agency's position on bitcoin and cryptocurrencies following the approval of spot bitcoin exchange-traded funds (ETFs).
The SEC chairman opened by saying, "Today, the Commission approved the listing and trading of a number of spot bitcoin exchange-traded product (ETP) shares." Since 2018, the agency has rejected more than 20 exchange rule submissions for spot bitcoin ETPs.
The U.S. Court of Appeals for the District of Columbia ruled that "the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale's proposed ETP," Gensler said. "Circumstances, however, have changed." As such, Gensler stated:
In light of these conditions I believe that approving the listing and trading of these spot bitcoin ETP shares is the most viable course of action.
One of the eleven issuers approved by the SEC on Wednesday to list and trade their spot bitcoin ETFs on NYSE Arca, Nasdaq, and Cboe BZX Exchange is Grayscale Investments, which plans to transform its bitcoin trust into a spot bitcoin ETF.
The approval of spot bitcoin exchange-traded funds (ETFs) by the SEC, according to Gensler, "should in no way signal the Commission's willingness to approve listing standards for crypto asset securities." In addition, the head of the SEC made it clear that the approval "signals nothing about the Commission's views as to the status of other crypto assets under the federal securities laws or about the current state of non-compliance of certain crypto asset market participants with the federal securities laws."
"As I've said in the past, and without prejudging any one crypto asset, the vast majority of crypto assets are investment contracts and thus subject to the federal laws," Gensler said, restating his long-held belief that the majority of cryptocurrency tokens are securities. The chairman of the SEC declared in closing:
We did not authorize or support bitcoin, even though we did approve the listing and trading of certain spot bitcoin ETP shares today. Because there are so many hazards involved with bitcoin and goods whose value is correlated with cryptocurrency, investors should exercise caution.
Gensler also cautioned against investing in cryptocurrencies on social media multiple times this week. He issued a warning on Monday about several hazards in the cryptocurrency sector. He gave cryptocurrency investors investing advise on Tuesday.
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