Amid the excitement surrounding the approval of spot bitcoin exchange-traded funds (ETFs), U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler issued a statement emphasizing that the regulator did not approve or endorse bitcoin by approving spot bitcoin ETFs. Gensler insisted that most crypto assets are securities, warning: “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”
SEC Chair Gary Gensler’s Statement About Bitcoin Following Spot Bitcoin ETF Approvals
After greenlighting spot bitcoin exchange-traded funds (ETFs), U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler issued a statement clarifying the regulator’s stance on bitcoin and cryptocurrency.
“Today, the Commission approved the listing and trading of a number of spot bitcoin exchange-traded product (ETP) shares,” the SEC chairman began, noting that the agency disapproved more than 20 exchange rule filings for spot bitcoin ETPs since 2018.
“Circumstances, however, have changed,” Gensler stressed, adding that the U.S. Court of Appeals for the District of Columbia held that “the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed ETP.” Consequently, Gensler said:
Based on these circumstances … I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.
Grayscale Investments, which seeks to convert its bitcoin trust to a spot bitcoin ETF, was also among the 11 issuers authorized by the SEC on Wednesday to list and trade their spot bitcoin ETFs on NYSE Arca, Nasdaq, and Cboe BZX Exchange.
Also Read: Ethereum Dominates as SEC Greenlights 11 Bitcoin ETFs
Gensler further explained that the SEC’s approval of spot bitcoin ETFs “should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.” Moreover, the SEC chief emphasized that the approval does not “signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws or about the current state of non-compliance of certain crypto asset market participants with the federal securities laws.”
Reiterating his long-standing view that most crypto tokens are securities, Gensler stated: “As I’ve said in the past, and without prejudging any one crypto asset, the vast majority of crypto assets are investment contracts and thus subject to the federal laws.” The SEC chairman concluded:
While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.
This week, Gensler also issued several warnings on social media about crypto investing. On Monday, he warned of various risks in the crypto industry. On Tuesday, he offered investment advice for crypto investors.
Source: Bitcoin
