Endorsing Bitcoin ETFs doesn’t change Gensler’s view on digital currencies
The approval of spot bitcoin ETFs does not mean that US Securities and Exchange Commission Chairman Gary Gensler’s views on cryptocurrencies have changed, according to a statement released last night.
To Report According to Cointelegraph, US Securities and Exchange Commission Chairman Gary Gensler reiterated in a statement that the agency still does not approve Bitcoin despite approving 11 spot ETFs. On January 10, just one hour after this historic confirmation, he wrote in his statement:
While today we confirmed the request to supply and trade a certain number of Spot Bitcoin ETPs, we did not confirm or accept Bitcoin.
Gensler reiterated his agency’s stance on digital currencies; The claim that the speculative nature of Bitcoin contrasts with the use of precious metals such as gold, silver, and platinum. He added that the SEC remains neutral and does not comment on companies, investments, or the assets of an exchange-traded product (ETP).
He pointed out that Bitcoin is still used to settle transactions related to illegal activities. However, there is much evidence to the contrary.
Although we are neutral, we must note that the underlying assets in metals ETPs have consumer and industrial uses, while Bitcoin is primarily a speculative and volatile asset that is involved in illegal activities such as ransomware, money laundering, sanctions evasion, and financing. Terrorism is also used.
Gensler added:
Investors should remain cautious about the numerous risks associated with Bitcoin and products whose value is linked to digital currencies.
Referring to his agency’s point of view, he noted that the vast majority of digital currencies are investment contracts and should be under the supervision of the Securities and Exchange Commission. In separate lawsuits against Binance and Coinbase, the regulator has named a total of 68 digital currencies that it claims are securities.
The US Securities and Exchange Commission has finally approved the 19b-4 plans of Arc 21shares, Insco Galaxy, OneAc, Hashdex, Bitwise, GrayXil, BlackRock, Valkyrie, Fidelity, WisdomTree and Franklin Templeton.