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Gensler highlights SEC’s consistent approach to Bitcoin ETFs

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TL;DR

  • Gary Gensler discussed the status of Bitcoin ETF proposals and the SEC’s rigorous review process.
  • Gensler emphasized the SEC’s commitment to their longstanding methods and the active role of various divisions in the review process.
  • The SEC did not appeal against Grayscale’s court victory, as confirmed by Gensler.

In a recent interview with Bloomberg, Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), discussed the status of multiple Bitcoin ETF proposals, highlighting the rigorous review process but refraining from specific commentary on the potential for simultaneous approvals. The conversation revealed around ten spot Bitcoin ETF applications are under meticulous examination by SEC professionals, reflecting the agency’s commitment to thorough analysis and feedback provision.

Gensler emphasized his inability to pre-empt the outcomes, adhering strictly to the regulator’s longstanding protocols. He elaborated on the SEC’s current engagement with “multiple filings,” noting various divisions’ active role in conveying insights to applicants. This approach, he remarked, aligns with a “time-tested process” that the SEC has reliably employed for decades, underscoring the institution’s consistency in its operations.

Significantly, the discussion transitioned to Grayscale’s notable endeavor to transition its GBTC fund into a spot Bitcoin ETF. Historical context suggests the prominence of this move, as Grayscale triumphed in court in August, securing its plea for an SEC review. However, the plot thickened when the deadline for the SEC to appeal passed without incident on October 13. Gensler confirmed this passive stance, stating, “We didn’t appeal last Friday … I think that’s accurate,” yet maintained discretion on the proceeding’s current status.

However, this careful examination process for Grayscale’s initiative doesn’t guarantee approval and doesn’t dictate the fate of other similar proposals, clarifying the independent nature of each application’s review. Additionally, the market experienced turbulence following an erroneous report on BlackRock’s Bitcoin ETF endorsement, which propelled Bitcoin’s value momentarily, demonstrating the market’s sensitivity to such developments.

However, Gensler’s revelations paint a picture of an organization deeply committed to its foundational procedures, ensuring each application receives an equal, unbiased evaluation. This stance resonates with the financial community’s need for stability and predictability in regulatory actions, particularly in volatile cryptocurrency markets.

The SEC’s methodical approach under Gensler’s leadership reaffirms its position as a cautious yet fair regulator, balancing the fintech sector’s dynamism with the necessity for investor protection and market integrity. While the cryptocurrency community awaits these pivotal decisions, the SEC’s unwavering adherence to its procedural legacy remains evident.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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