Securities and Exchange Commission Chairman Gary Gensler remained silent Wednesday when reporters asked whether the industry could soon see any action related to spot Bitcoin ETF applications under review.
Gensler, speaking Wednesday at the Healthy Markets Association conference, said he would not “prejudge” the issue. He previously called The agency’s review process is a “time-tested process.”
The cryptocurrency industry has been waiting with bated breath for authorities to approve what will be the first spot Bitcoin ETF. Several applications have been submitted in recent months from asset managers including BlackRock and Fidelity, but all have so far been delayed.
“When an asset manager wants to take something public, these publicly traded products have to register with the SEC and go through filings similar to a public offering, like an IPO,” Gensler said. interview with Bloomberg TV last month.
“So it is the job of the corporate finance department to provide feedback, and of course the trading and markets department reviews the documents,” he continued. “This is a time-tested process that goes back decades. The SEC staff is called the Public Review Team, but that group responds and provides feedback to potential issuers.”
The SEC tuesday A new meeting was held with Invesco and BlackRock representatives to discuss potential approaches to address concerns about “balance sheet impacts and risks.” I also met with the agency. grayscale BlackRock did the same last week, according to a memo released by the SEC.
Gensler reiterates his stance on cryptocurrencies
In remarks Wednesday, Gensler reiterated his position that Bitcoin is considered a commodity and expressed concerns about the cryptocurrency industry as a whole.
The SEC has taken enforcement actions against cryptocurrency companies over the past year, including U.S.-based Coinbase and Binance, the world’s largest cryptocurrency exchange.
When asked by a reporter what he thought of Commodity Futures Trading Commission Chairman Rostin Behnam’s comments that the derivatives regulator needs more authority to oversee cryptocurrencies, Gensler said the CFTC would be given more authority, especially on Bitcoin. He said he supports it.
Gensler, who was once chairman of the CFTC, has previously said that many cryptocurrencies are securities.
Howey test
In litigation, the SEC often cites the Howey Test, a 1946 U.S. Supreme Court case involving citrus groves, to determine whether a transaction is an investment contract and therefore subject to securities laws. However, this approach has drawn criticism from some, including Coinbase. stretched out Howey’s claims are “beyond recognition.”
“In this field, it’s like common sense versus hyperbole,” Gensler said. “This is a sector rife with bad actors, rife with fraud, manipulation and money laundering.”
Gensler cited a previous speech comparing non-compliance in the cryptocurrency industry to the 1920s, before federal securities laws were enacted.
“It was kind,” Gensler said Wednesday.
When asked what Gensler would say to cryptocurrency investors or people curious about cryptocurrencies, the chairman said, “Be careful, be careful, be careful.”
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