Gary Gensler Clarifies SEC Approval of Bitcoin Spot ETFs Does Not Constitute Endorsement of Bitcoin
Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), stated on Wednesday that the agency’s approval of Bitcoin Spot ETFs does not mean that it endorses Bitcoin. This approval follows a court ruling requiring the SEC to reexamine a request for a Bitcoin spot ETF from Grayscale Investments. However, upon closer examination, Gary Gensler’s vote in favor was crucial in approving the ETFs.
In fact, Gensler, Peirce, and Uyeda voted in favor of approving the Bitcoin spot ETFs, while Lizárraga and Crenshaw voted against, resulting in a 3-2 victory for the approval vote.
Gary Gensler’s Firm Stance on Crypto
Gary Gensler emphasized that the approval of Bitcoin Spot ETFs “does not in any way signal the Commission’s willingness to approve listing standards for crypto assets.” He added that this also does not reflect the Commission’s views on the status of other cryptographic assets under federal securities laws, reiterating that the majority of cryptographic assets are investment contracts and therefore subject to these laws.
Gensler also stressed that the approval does not mean that the SEC endorses Bitcoin. He advised investors to remain cautious in light of the risks associated with Bitcoin and products linked to cryptocurrency. The Bitcoin Spot ETFs will provide certain protections, including requiring sponsors to provide full and fair disclosures, and will be listed on regulated exchanges designed to prevent fraud and manipulation.
Reactions from SEC Commissioners
Hester Peirce and Mark Uyeda, Republican commissioners of the SEC, supported the approvals but expressed concerns about the Commission’s analytical approach. Caroline Crenshaw, a Democratic commissioner, dissented, highlighting the risks of fraud and manipulation in Bitcoin spot markets and their potential impact on other market products.