SEC Chairman Comments on Bitcoin ETF Approval: We Don't Support It

Despite approving 11 spot Bitcoin exchange-traded funds (ETFs) today, United States Securities and Exchange Commission (SEC) Chairman and prominent crypto critic Gary Gensler flatly refuses to endorse Bitcoin. Here are the details...

SEC Chairman comments on Bitcoin ETF

As we reported as Kriptokoin.com, the SEC's ETF approval was on the agenda on the night connecting Wednesday to Thursday. However, Gary Gensler made a statement on the subject. "Today we approve the listing and trading of certain spot bitcoin ETP shares. However, we have not endorsed Bitcoin," he said. In a recent statement, Gary Gensler provided a detailed overview of the SEC's approval process. Specifically, for the 11 spot Bitcoin ETF applications of major U.S. government companies that the SEC approved today. He emphasizes that giving the green light to these applications does not mean that the SEC supports BTC. Gensler says:

This should in no way imply the Commission's willingness to approve listing standards for crypto securities.

He also notes that investors can already buy Bitcoin through crypto exchanges and other means, but the approval of spot Bitcoin ETFs now provides additional protection for investors. Gensler explains that BTC ETF sponsors are required to make full, fair, and accurate disclosures about products. Furthermore, investors of any listed and traded Bitcoin ETF will benefit from the "disclosures contained in public record statements and required periodic filings."

SEC has been overseeing ETFs for 20 years

Gensler also notes that the SEC has overseen ETFs and related products for almost two decades. It assures investors that the regulatory body is now overseeing this product. Additionally, investors can have peace of mind knowing that these funds are protected by stricter laws. Gensler says:

Since > 2004, this institution has had experience in supervising non-securities commodity ETPs, such as those holding certain precious metals. This experience will be valuable in the custody of spot Bitcoin ETP trading.

At the moment, the price of Bitcoin was $46,471. On Jan. 10, reports reported that the SEC had approved 11 applications for spot BTC ETFs from major asset management firms. The SEC's approval of the spot Bitcoin ETF represents a major shift in the regulatory environment. It also points to the increasing acceptance of cryptocurrencies in traditional financial systems. The ETF allows investors to access BTC without the complexities of direct ownership, such as managing cryptographic keys. This development could potentially attract a wider range of investors, including those who prefer traditional investment vehicles.

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