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SEC’s Gensler weighs in on pending Bitcoin ETF applications: Details

TL;DR

  • SEC Chair Gary Gensler discussed the ongoing review of multiple applications for spot Bitcoin ETFs, stating the SEC staff are actively working on them but refrained from committing to any specific actions.
  • The SEC initiated Additional proceedings last month, leading to at least another month of delay in the decision-making process for proposed Bitcoin ETFs from asset managers like BlackRock, Invesco, Valkyrie, and Fidelity.
  • Gensler highlighted the role of various SEC divisions in reviewing the applications, including the Division of Corporation Finance and the Division of Trading and Markets, emphasizing that this is a time-tested process involving multiple layers of scrutiny.

Securities and Exchange Commission (SEC) Chair Gary Gensler offered a few new insights into the highly-anticipated approval process for spot Bitcoin Exchange-Traded Funds (ETFs) during a recent interview with Bloomberg TV. Without delving into specifics, Gensler stated that the SEC staff is “doing work on those multiple filings.” Moreover, the SEC Chair declined to offer any commentary on the regulatory body’s ongoing case against Grayscale Investments following last month’s court ruling, which the company chose not to appeal.

A maze of filings, yet silence on approval

Asset management giants such as BlackRock, Invesco, Valkyrie, and Fidelity are in a holding pattern as the SEC has instituted additional proceedings to determine the fate of their proposed spot Bitcoin ETFs. These proceedings suggest that the agency is opting for a meticulous approach, potentially adding at least another month to the already-in-progress review processes. Additionally, Gensler wouldn’t confirm if the SEC would approve a single fund first or wait for a comprehensive group approval.

In his discussion with Bloomberg TV, Gensler emphasized that multiple filings, perhaps as many as eight or ten, are currently under review. He explained that these are not just routine applications but involve significant deliberation from different divisions within the SEC. Specifically, the Division of Corporation Finance provides feedback, and the Division of Trading and Markets scrutinizes the filings in detail.

What makes this prolonged review particularly noteworthy is the history of the process itself. Gensler pointed out that it’s a “time-tested process” going back decades. He also pointed out that the SEC staff involved in these evaluations constitute the Disclosure Review Team. This team is responsible for responding and offering feedback to potential issuers of such financial products.

In the wider context, this ongoing review by the SEC does reflect broader questions about cryptocurrency regulation. While the world watches eagerly, the U.S. financial watchdog remains cautiously circumspect. The SEC has not set a definite timeline for these decisions, thus keeping the asset management firms and, indeed, the larger financial community in a state of anticipatory suspense.

Importantly, Gensler’s comments do underscore the sense of responsibility that the SEC feels in ensuring that any approved financial products meet stringent regulatory criteria. Hence, as the waiting game continues, all eyes remain on the SEC for the next chapter in this unfolding narrative.

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 decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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