Gary Gensler, the current chairman of the United States Securities and Exchange Commission (SEC), has previously criticized the regulatory body for its inconsistent approach to spot Bitcoin (BTC) products. This criticism came to light when a video from 2019 resurfaced recently on social media. In the video, Gensler can be seen participating in a fireside chat with SEC Commissioner Hester Peirce at the MIT Bitcoin Expo, discussing blockchain regulation.
During the conversation, Gensler expressed his perplexity regarding the existence of Bitcoin futures and Ethereum futures, while Bitcoin exchange-traded funds (ETFs) had not yet been approved. He pointed out that although the laws surrounding these products might not be exactly the same, they are quite similar. This discrepancy in regulatory treatment seemed inconsistent to him at the time.
The resurfaced video has sparked a reaction from the crypto community on Twitter, highlighting the contradiction between Gensler’s past statements and his current stance on spot Bitcoin ETFs. Market analyst Zack Voell tweeted, “Gary Gensler says Gary Gensler is wrong,” implying that Gensler’s current position contradicts his previous criticism. Another Twitter user commented on the missed opportunity for a more relaxed and normal Gensler.
As of now, the SEC has only approved Bitcoin and Ethereum futures ETFs, while spot Bitcoin ETF applications have been consistently rejected since 2017. This trend continued under Gensler’s leadership, with the rejection, delay, or pushback of recent spot Bitcoin ETF applications due to a lack of sufficient safeguards against market manipulation.
Notably, Gensler’s SEC faced legal action from asset manager Grayscale after rejecting its bid to convert its existing Bitcoin trust into a spot ETF. A court ruling found the SEC’s rejection to be “arbitrary and capricious,” and the SEC chose not to appeal the decision.
The contrast between Gensler’s past criticism and his current stance on spot Bitcoin ETFs raises questions about the regulatory consistency and decision-making within the SEC. It also brings into focus the ongoing debate surrounding the approval and regulation of cryptocurrency-related financial products.
In conclusion, the resurfaced video showing Gensler criticizing the SEC’s inconsistent approach to spot Bitcoin products has highlighted the contradictions in his current stance on Bitcoin ETFs. The rejection of spot Bitcoin ETF applications and the lack of regulatory clarity remain significant challenges for the cryptocurrency industry.
Source link