SEC Chair Gary Gensler Sees Irony in Spot Bitcoin ETF Approval — ‘This Was About Centralization’

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler sees irony successful the support of spot bitcoin exchange-traded funds (ETFs). “This was astir centralization and accepted means of finance,” said Gensler, warning: “Investors should beryllium alert that this underlying plus is simply a highly speculative, volatile asset, and amongst its usage cases is truly for illicit activity, wealth laundering, sanctions, ransomware, and the like.”

SEC Chair connected Spot Bitcoin ETF Approval and Centralization

The president of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, discussed the irony of spot bitcoin exchange-traded funds (ETFs) successful an interrogation with CNBC Friday. The securities regulator approved 11 spot bitcoin ETFs past week.

“There’s an irony successful the midst of that. Satoshi Nakamoto [bitcoin’s pseudonymous creator] said this was going to beryllium a decentralized system,” Gensler said, noting that the support of spot bitcoin ETFs “has led to centralization.” The SEC main stressed:

Think astir the irony of those who accidental this week is historic. This was astir centralization and accepted means of finance.

He added: “Investors could already explicit themselves successful bitcoin. You could already, earlier this week, bargain it done large brokerage houses, but present you tin bargain it done this happening called an exchange-traded merchandise arsenic well, centralized,” helium noted. “There’s a batch of centralization here.”

The securities regulator approved 11 spot bitcoin ETFs past week. Although Gensler was the deciding vote approving the 11 funds, the SEC president clarified that the support was not an endorsement of bitcoin.

Gensler clarified: “Bitcoin itself, we did not approve, we did not endorse. This is simply a merchandise called an exchange-traded product, a mode that investors tin put successful that underlying non-security commodity called bitcoin.” The SEC president proceeded to warn:

Investors should beryllium alert that this underlying plus is simply a highly speculative, volatile asset, and amongst its usage cases is truly for illicit activity, wealth laundering, sanctions, ransomware, and the like.

“It is simply a speculative worth store of value,” helium continued. “Is it being utilized arsenic a outgo anywhere? Are we buying cups of java with it? Not really. The lone outgo mechanics it’s being utilized for successful a superior consciousness is illicit activity.”

What bash you deliberation astir the statements by SEC Chairman Gary Gensler? Let america cognize successful the comments conception below.