SEC’s Gensler Re-Examines Bitcoin ETF Filings

SEC Chair Gary Gensler has recently indicated that the U.S. Securities and Exchange Commission is reassessing its stance on spot Bitcoin exchange-traded products (ETPs). This shift follows a significant court ruling involving Grayscale.

During a CNBC interview on December 14, Gensler discussed the numerous pending spot Bitcoin ETF applications, noting that the SEC is currently processing “between eight and a dozen filings.” He acknowledged the SEC’s history of denying such applications but hinted at a possible change in approach following recent court decisions. Gensler stated, “So we’re taking a new look at this based upon those court rulings.”

When pressed by news anchor Sara Eisen about whether he was referring to the Grayscale case, Gensler did not directly answer, emphasizing that the SEC operates within the legal framework set by Congress and interpreted by the courts.

In August, a federal judge reversed the SEC’s decision to deny a Grayscale Investments ETF offering via its Bitcoin trust. This development has added momentum to the efforts of several large asset managers, including BlackRock, Fidelity, Grayscale, Invesco, Galaxy, VanEck, and Valkyrie, who are all vying to launch a spot Bitcoin ETF. Despite delays, some analysts are hopeful that a collective approval might happen in early January 2024.

In another interview with Bloomberg’s Kailey Leinz on the same day, Gensler evaded questions about the specific number of spot Bitcoin product filings. Instead, he shifted the focus to recent changes in the U.S. treasury market, highlighting it as a priority for the SEC.

Responding to Gensler’s interviews, U.S. Representative Bryan Steil criticized Gensler’s evasive responses on X (formerly known as Twitter), accusing him of being vague about the SEC’s stringent regulatory approach that, according to Steil, is driving the crypto industry offshore. Bloomberg ETF analyst James Seyffart also commented on Gensler’s tendency to avoid giving straightforward answers, noting his skill in hedging his words.