In a surprising turn of events, Gary Gensler, the SEC Chairman, dubbed his own position on Bitcoin ETF as ‘inconsistent,’ raising eyebrows and sparking a heated debate among cryptocurrency enthusiasts.
Gary Gensler, the current chairman of the United States Securities and Exchange Commission (SEC), once criticized the SEC’s inconsistent approach to Bitcoin products, according to a resurfaced video from 2019. In the video, Gensler discussed blockchain regulation at the MIT Bitcoin Expo and expressed his concerns about the lack of consistency in approving Bitcoin futures and ETFs.
Gensler mentioned that while Bitcoin futures and potentially Ethereum futures would exist, Bitcoin ETFs had not been approved. He found this inconsistency puzzling, considering that the laws governing these products were quite similar. This video has recently gained attention on social media, leading to discussions among the crypto community.
Many Twitter users noted the contrast between Gensler’s previous views and his current stance on spot Bitcoin ETFs. Market analyst Zack Voell highlighted this contradiction, while another user remarked about missing the “chill and normal” Gensler.
To date, the SEC has only approved Bitcoin and Ether futures ETFs. This approval has been consistent with the SEC’s previous rejections of spot Bitcoin ETF applications. Gensler has cited concerns about market manipulation and the lack of necessary protections as reasons for denying, delaying, or pushing back these applications.
The SEC’s rejection of Grayscale’s bid to convert its existing Bitcoin trust into a spot ETF led to a lawsuit. A court ruled that the SEC acted arbitrarily in rejecting the application, but the SEC chose not to appeal the decision.
This resurfaced video and Gensler’s current approach to Bitcoin ETFs have sparked conversations about the SEC’s stance on cryptocurrency regulation. It remains to be seen how Gensler’s leadership will shape the future of crypto regulation in the United States.