Title: Gary Gensler Criticizes Inconsistent Approach to Bitcoin Products, Video Resurfaces
Date: [Insert Date]
Gary Gensler, the current chair of the United States Securities and Exchange Commission (SEC), has come under scrutiny as a resurfaced video from 2019 shows him criticizing the regulatory body’s “inconsistent” approach to spot Bitcoin (BTC) products. The video, which recently gained attention on social media, features Gensler discussing blockchain regulation at the 2019 MIT Bitcoin Expo alongside SEC commissioner Hester Peirce.
During the fireside chat, Gensler expressed his concern about the disparity between the existence of Bitcoin futures and Ethereum futures, and the absence of Bitcoin exchange-traded funds (ETFs). “Bitcoin futures, and I think Ethereum futures and so forth, will exist, and Bitcoin ETFs have not, and that feels a little inconsistent to me… It feels a little inconsistent,” Gensler stated. He further highlighted the similarity between the laws governing these products, emphasizing the need for a more harmonized approach.
The crypto community on Twitter took note of this contrast and voiced their opinions. Market analyst Zack Voell tweeted, “Gary Gensler says Gary Gensler is wrong.” Another user remarked, “We missed out on chill and normal Gensler.”
Interestingly, the SEC has so far only approved Bitcoin and Ethereum futures ETFs, leaving spot Bitcoin ETFs unapproved. This rejection of spot Bitcoin ETF applications has been a recurring trend since 2017, a trend that has continued under Gensler’s leadership. He has consistently cited concerns about market manipulation and the lack of adequate safeguards as reasons for denying, delaying, or pushing back spot Bitcoin ETF applications.
Gensler’s SEC faced legal action when asset manager Grayscale sued the regulatory body for rejecting its bid to convert its existing Bitcoin trust into a spot ETF. In a subsequent court ruling, it was determined that the SEC’s rejection was “arbitrary and capricious.” However, the SEC did not appeal the decision.
The resurfaced video, along with Gensler’s stance on spot Bitcoin ETFs, has sparked discussions about his regulatory approach and raised questions about the SEC’s consistency in dealing with Bitcoin-related financial products.
As the crypto industry continues to evolve, all eyes are on Gensler and the SEC to see how they navigate the regulatory landscape and address the growing demand for innovative financial products in the digital asset space.
Related: Ripple CEO criticizes former SEC Chair Jay Clayton’s comments.
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