TL;DR Breakdown
• The Bitcoin ETF could come with some rules, according to the SEC chairman.
• Gary Gensler plans to change the cryptocurrency regulatory landscape under his terms.
The current SEC Chairman, Gary Gensler, has taken advantage of his position to support crypto funds in Bitcoin. In this way, both Gensley and crypto investors agree that the market is the right step to flow.
The SEC chairman announces that a Bitcoin ETF will comply with the rules applied by the commission to make shared funds safe. With a well-managed collective fund plan, the investor can have the protection he needs.
Gensler announced the measure in a speech in which he supported the cryptocurrency market accused of fraud on several occasions. In the announcement, Gensley said that the ETF market would be solely and exclusively for Bitcoin futures, but he does not rule out that it could be updated. BTC futures trading will be granted by CME Group, adhering to strict commission rules.
SEC changes its idea about crypto
Under the order of Gensley and Jay Clayton as its previous chairman, the commission had refused the cryptocurrency ETF market. However, everything points to Gensley have changed his mind and allowed the decentralized market.
Many of the pending exchange-traded fund proposals have been submitted under the 1930s rules. Gensley wants a fund under the 1940s rule to make it work in crypto. This law makes ETFs have greater protection, and the commission supervises them occasionally. Among other rules, mutual funds must have an autonomous board and regulation of users who join them.
ETF restrictions for cryptocurrencies have different opinions
Constructing an ETF in crypto and its regulations by the SEC have different opinions among investors. Some enthusiasts think the regulations are fair, while others think they are very strict. Former investment manager on the committee, David Grim, thinks the fund’s measures are high.
Grim adds these rules come with complications that vary according to trade and financial services. The business management expert concludes by saying that perhaps the imposed measures are exaggerated.
This crypto fund may bring diverse opinions from the decentralized market. With this announcement, the commission could debate whether cryptocurrencies are worthless decentralized securities or currencies.
There are around six Bitcoin-focused mutual fund apps that are available to the commission.
In the speech, the SEC president said that he feels interested in Blockchain and its technology. However, if approved, he would have to take tough measures to care for users interested in it. Cryptocurrencies seem to be in Gensley view who opened the debate on whether or not it is good for shared funds.
