SEC Chair Gary Gensler has labeled the approval of Bitcoin ETFs as ‘ironic’ due to their centralized nature, which contradicts the decentralized vision of Bitcoin’s creator, Satoshi Nakamoto. In a recent interview on CNBC’s “Squawk Box”, Gensler delved into the reasons behind the SEC’s approval of these ETFs and addressed concerns raised by Senator Elizabeth Warren.
Gensler stated that the approval of 11 spot Bitcoin ETFs was a result of a recent court decision in the SEC’s lawsuit against Grayscale. The court ruled that the SEC had no legitimate grounds to reject a spot Bitcoin ETF since it had approved products based on futures for the flagship cryptocurrency. Gensler emphasized that the SEC respects the law and will always follow the court’s directives regarding regulation.
However, Gensler clarified that the approval of the ETFs does not mean the SEC endorses Bitcoin. He maintains a critical stance towards the asset, describing Bitcoin as a “volatile store of value” that is not being used for any legitimate payments. He acknowledged the potential of the underlying technology and stated that approving the ETFs was the “most sustainable path forward”.
Gensler also clarified that Bitcoin is the only cryptocurrency the SEC considers a non-security commodity, comparing it to gold and silver-based products. He added that the regulator continues to believe that the majority of crypto tokens are securities.
Senator Elizabeth Warren has been a vocal critic of the cryptocurrency market and has criticized the SEC’s approval as legally and policy-wise erroneous. In response to these concerns, Gensler expressed respect for differing opinions but reaffirmed his commitment to following legal and court directives. He stated, “While I understand and respect the concerns raised by Senator Warren, our decision is grounded in a rigorous consideration of the legal framework and the current financial realities.”
Despite the controversy surrounding the SEC’s decision, the approval of these Bitcoin ETFs signifies a potentially new era for cryptocurrency in the mainstream financial market. The inaugural trading session following the approval witnessed significant activity, indicating strong investor interest and potentially paving the way for more widespread acceptance of digital assets.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Gary Gensler, Elizabeth Warren |
| Companies | SEC (Securities and Exchange Commission), CNBC, Grayscale |
| Currencies | Bitcoin |
| Securities | None |
