Gensler Still Hates Crypto

In a recent Senate hearing, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler expressed his continued concerns about the cryptocurrency industry. However, he remained tight-lipped regarding the direction the SEC would take concerning the numerous Bitcoin spot exchange-traded fund (ETF) applications under review.

Senator Bill Hagerty (R-TN) referenced a surprising verdict from last month when a federal judge sided with Grayscale against the SEC. He inquired about the prerequisites required in a filing for the approval of a spot Bitcoin ETF. Addressing the Senate Banking Committee, Gensler mentioned that the SEC is still evaluating the decision. He pointed out, “There are several filings pertaining to Bitcoin exchange-traded products, not only the one highlighted but also various others under review. I eagerly await the staff’s input on this matter.”

Previously, the SEC’s rejection of Grayscale’s spot Bitcoin ETF application was challenged in court, with the judge ruling in favor of Grayscale.

The buzz around a spot Bitcoin ETF is immense. Such an ETF would enable investors to delve into Bitcoin without directly possessing the digital asset. Over the years, the SEC has consistently rejected applications for such a product, even though there is significant investor interest, particularly from institutions, who see it as a safer and more accessible method to get involved in the crypto realm.

In recent news, Franklin Templeton joined the growing list of major Wall Street firms applying for a Bitcoin ETF, introducing their “Franklin Bitcoin ETF” application to the SEC. Other prominent names in the queue include BlackRock, the world’s top fund manager, and the renowned Boston-based firm, Fidelity.

However, Gensler’s sentiments towards the cryptocurrency sector remain apprehensive. He equated the industry to an unruly frontier lacking proper oversight and said, “The arena is rampant with deception, exploitation, and violations,” while addressing the senators.

Some legislators argue that Gensler’s ambiguous stance towards cryptocurrency enterprises is hindering innovation. During his tenure, the SEC has taken stringent measures against key players in the crypto space, launching legal actions against well-known entities like Coinbase, Binance, Kraken, and more.