Approving Bitcoin ETF, SEC Still Does Not Support Crypto

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Statement from SEC Chairman Gary Gensler after approval of Bitcoin spot ETF

In the official statement following the approval of the 11 proposals for direct Bitcoin spot investment funds from Wall Street giants, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler asserted that the agency still maintains a neutral stance towards any type of cryptocurrency.

The decision to approve the Bitcoin spot ETF mainly comes from the pressure of a decision by the Washington Court of Appeals in August 2023, requiring the SEC to reconsider Grayscale’s proposal after rejecting it in June 2022.

Mr. Gensler explained that, after review, the Securities and Exchange Commission assessed that the decision to approve a Bitcoin spot ETF was the best approach for these products.

JUST IN: 🇺🇸 SEC Chair Gary Gensler releases official statement saying they approved spot #Bitcoin ETFs pic.twitter.com/dD3JVK99Qd

— Bitcoin Magazine (@BitcoinMagazine) January 10, 2024

However, the SEC Chairman emphasized that this decision should not be seen as a change in the Commission’s stance towards other cryptocurrencies. In the announcement, Mr. Gensler said:

Today’s action only applies to a specific type of crypto asset that has been recognized as not being a security, which is Bitcoin. The approval decision does not represent a change in the U.S. Securities and Exchange Commission’s (SEC) stance on the legal status of other crypto assets under federal securities laws or the non-compliance of many companies involved in this market. As I have stated in the past, the majority of crypto assets are considered investment contracts and fall under the regulatory purview of federal securities laws.

AZC.News has compiled that in legal documents, the SEC has identified 52 cryptocurrencies as securities, many of which have large capitalization in the crypto market.

Mr. Gensler further noted that the US Securities and Exchange Commission does not endorse Bitcoin in any way, but only provides clarity on the legal aspects that investors can participate in trading after considering. Full information about the risks involved.

The Bitcoin spot direct investment fund will be listed on licensed exchanges, requiring the issuer to provide full information, and implement anti-fraud and manipulation measures.

Comments from SEC commissioners

Other SEC commissioners have expressed differing attitudes toward the approval of the Bitcoin spot ETF. Hester Pierce, who advocates for a pro-crypto stance, characterized this as a long-awaited and expected step forward. She criticized the SEC for being too slow in approving the Bitcoin spot ETF, stating that it has resulted in a waste of resources.

Commissioner Mark Uyeda, although expressing concerns about some aspects of the decision, given the lack of specific legislation fully governing the cryptocurrency sector, also expressed support. Both Ms. Pierce and Mr. Uyeda voted in favor.

Mr. Caroline Crenshaw voted against on the grounds that Bitcoin’s spot market still has many signs of manipulation and fraud, creating risks for investors when accessing this cryptocurrency through ETFs.

According to the final results of the vote, the faction in favor of approving the Bitcoin spot ETF includes Chairman Gary Gensler and two commissioners Hester Pierce and Mark Uyeda. Meanwhile, the opposition was joined by commissioners Caroline Crenshaw and Jaime Lizárraga.