Evolving perspectives are not uncommon. However, few individuals’ changing views have captured the attention of the crypto community as much as Gary Gensler’s. A surfaced video from 2019 unveiled Gary Gensler commenting on the U.S. securities regulator’s approach to Bitcoin-centric products, specifically spot Bitcoin ETFs. This revelation has sparked notable discussions, given his current position as the chair of the U.S. SEC.
A Glimpse into the Past: 2019 Gary Gensler Commentary
The 2019 video showcases Gary Gensler, before his SEC tenure, engaging in a stimulating discussion at the MIT Bitcoin Expo. Accompanied by SEC Commissioner Hester Peirce, Gensler delves into blockchain regulation. His words then seemed to carry a different tune. He pointed out the seeming inconsistency in the regulatory approach toward Bitcoin futures and Bitcoin Exchange Traded Funds (ETFs).
Gensler’s foresight regarding Bitcoin and Ethereum futures was spot on. Yet, his discontent with the absence of Bitcoin ETFs highlighted a regulatory disparity he found troubling. His phrase, “It feels a little inconsistent,” echoed the thoughts of many crypto enthusiasts.
Fast forward to the present, and Gensler’s past remarks have resurfaced, igniting discussions on platforms like X. The crypto community juxtaposed Gensler’s past and present views, especially concerning spot Bitcoin ETFs. A tweet by market analyst Zack Voell humorously encapsulated the sentiment, saying, “Gary Gensler says Gary Gensler is wrong.”
The SEC’s Stance on Spot Bitcoin ETFs
Under Gensler’s helm, the SEC has maintained its firm stance, approving only Bitcoin and Ether futures ETFs. Since 2017, the rejection of spot Bitcoin ETF applications has been a recurring narrative. The tradition has persisted under Gary Gensler, with recent applications either denied, delayed, or pushed back. The SEC’s primary concern hinges on the lack of market manipulation protections.
A significant turn of events unfolded when asset manager Grayscale sued the SEC over a denied application to morph its existing Bitcoin trust into a spot ETF. The court’s verdict deemed the SEC’s rejection as “arbitrary and capricious.” Curiously, the SEC chose not to appeal the decision.
The dialogue surrounding Gensler’s stance and the broader regulatory framework continues to unfold. It underscores the nuanced and often challenging path toward establishing a balanced regulatory environment for crypto assets. Amidst this ongoing narrative, the crypto community, regulators, and market participants strive for a common ground that fosters innovation while ensuring market integrity.
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