Despite the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), Chair Gary Gensler maintains a cautious stance on cryptocurrency. In a statement released on the SEC’s website coinciding with the approval, Gensler emphasized that endorsing bitcoin or altering the SEC’s overall perspective on crypto assets should not be inferred from the approval of spot Bitcoin ETFs.
According to the statement, the decision to greenlight spot Bitcoin ETFs was driven by evolving circumstances and a court directive mandating a reevaluation of Grayscale Investments’ application for a spot bitcoin ETF.
Gensler expressed his rationale by stating, “Considering these circumstances and those elaborated upon in the approval order, I believe the most sustainable course of action is to endorse the listing and trading of these spot bitcoin [exchange-traded product] shares.” It’s crucial to note, however, that Gensler emphasized the approval should not be construed as a signal of the SEC’s inclination to endorse listing standards for crypto asset securities or pass judgment on the compliance of specific crypto asset market participants with federal securities laws.
Reiterating his earlier stance, Gensler remarked, “As I’ve previously stated, and without precluding any particular crypto asset, the majority of crypto assets are deemed investment contracts and are consequently subject to federal securities laws.” Additionally, he urged investors to exercise caution and remain vigilant regarding the associated risks of Bitcoin and products linked to crypto assets in a broader context.
Bitcoin ETF approval is not an endorsement of Bitcoin
Gensler, while underscoring the SEC’s approval of spot Bitcoin ETFs, underscored that this approval should not be misconstrued as an endorsement of Bitcoin itself. Furthermore, he reiterated the imperative for caution, citing the “myriad risks associated with bitcoin and products whose value is tied to crypto.”
In essence, Gensler clarified that the approval does not signify a shift in the SEC’s overall position on crypto assets. The chair emphasized the necessity for investors to remain vigilant, particularly in the realm of cryptocurrency.
Hester Peirce’s statement
In her statement, which was also featured on the SEC’s website, Republican SEC Commissioner Hester Peirce criticized the agency’s historical approach to spot Bitcoin ETFs. She pointed out what she viewed as an “unbalanced focus” and a significant allocation of staff resources towards obstructing such applications over the past decade.
Peirce lamented the missed opportunities, stating, “We wasted ten years of possibilities to fulfill our responsibilities. If we had applied the same criteria used for other commodity-based Exchange-Traded Products (ETPs), we could have given approval to these products years ago. However, we hesitated until a court compelled us to reconsider,” wrote Peirce, colloquially referred to as ‘crypto mom’ due to her favorable stance on cryptocurrency.
