The U.S. Securities and Exchange Commission (SEC) is taking a “new look” at applications for spot Bitcoin ETFs following October’s landmark court ruling on Grayscale’s application to convert Grayscale Bitcoin Trust (GBTC) into an ETF. I’m doing it.
In an interview with CNBC On Thursday, Gensler said regulators were reviewing “eight to 12 filings.”
“In the past, we have denied many of these applications, but the courts here in the District of Columbia have weighed in on them,” Gensler said. “So we are taking a fresh look at this issue based on the court ruling.”
As SEC chairman, Gensler said, “I’m not going to prejudge anything.” He went on to add that the commission operates “within the laws passed by Congress and how the courts interpret them.”
Gensler went on to revisit a well-trodden furrow, calling the cryptocurrency space the “Wild West” and highlighting “securities law violations” by cryptocurrency companies and “fraud and bad actors” in the space.
“This is an area where we don’t yet have basic information about many projects,” he said, adding, “Intermediaries on so-called cryptocurrency exchanges are mixing it up and doing things that aren’t allowed anywhere else.” In our financial system.”
SEC and Bitcoin ETFs
The SEC has rejected all applications for spot Bitcoin ETFs to date. But there are signs that the winds may be changing.
Last October, the SEC was ordered to review Grayscale’s bid to convert GBTC into a spot Bitcoin ETF. It accepted similar terms after a U.S. appeals court agreed with Grayscale’s argument that the regulator’s decision was “arbitrary and capricious.” Structured Bitcoin Futures ETF Product.
Since then, the SEC has partnered with Grayscale, BlackRock, and most recently Fidelity and Franklin Templeton. Earlier this week, BlackRock modified its application based on its meeting with the SEC to make it easier for Wall Street banks to participate in ETFs by shifting risk to cryptocurrency market makers.
This has contributed to growing optimism in the cryptocurrency community that the approval of a spot Bitcoin ETF is imminent. bloomberg And JP Morgan both believes it’s likely one or more ETFs will be approved in January.
However, JP Morgan does not expect the approval to move the cryptocurrency market, with a recent report claiming that the approval of a spot Bitcoin ETF is unlikely to bring new capital to the market.
Editor: Andrew Hayward