Gary Gensler’s 2019 video has resurfaced and garnered everyone’s attention, as he is currently the head of the United States Securities and Exchange Commission (SEC). During a panel at the 2019 MIT Bitcoin Expo, Gensler criticized the SEC’s poor approach toward approving Bitcoin Exchange-traded funds (ETFs). Now, this video clip is going viral on social media platforms.
Gary Gensler’s two-sided SEC approach
In a conversation with SEC Commissioner Hester Peirce at the 2019 MIT Bitcoin Expo, Gensler asked the Commissioner why Bitcoin Futures received approval while spot Bitcoin ETFs are still awaiting approval. Due to these two-sided approaches by the SEC in 2019, he found it quite confusing, even though the legal framework for the two ETFs was quite similar.
Fast forward to today, Gensler, now the head of the SEC, and his stance on spot Bitcoin ETFs hasn’t changed since he took charge at the SEC. As of now, it has been observed that the regulator has continued to postpone or deny ETF applications, citing concerns about protection and considering them manipulative products.
Crypto community’s reaction to Gensler’s views
On X (formerly Twitter), members of the crypto community are pointing out the difference in Gary Gensler’s views on spot Bitcoin ETFs today. Recently, market analyst Zack Voell stated, “Gary Gensler says Gary Gensler is wrong.”
However, the SEC had previously rejected the spot ETF application from asset management firm Grayscale. Still, further objections and judicial intervention changed everything. Grayscale took the SEC to court for rejecting their proposal to convert their Bitcoin trust into a spot ETF.
According to the court ruling, if the SEC rejects any spot Bitcoin application, it must provide a transparent explanation for the rejection. However, the SEC later chose not to appeal this decision.
Currently, the SEC has only approved Bitcoin and Ethereum futures ETFs. But in the realm of cryptocurrency, everyone from investors to asset management firms is eagerly awaiting Spot ETF approval.