SEC Chair Gary Gensler Warns Spot Bitcoin ETF Approval Isn’t BTC Endorsement

Amid the excitement surrounding the support of spot bitcoin exchange-traded funds (ETFs), U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler issued a connection emphasizing that the regulator did not o.k. oregon endorse bitcoin by approving spot bitcoin ETFs. Gensler insisted that astir crypto assets are securities, warning: “Investors should stay cautious astir the myriad risks associated with bitcoin and products whose worth is tied to crypto.”

SEC Chair Gary Gensler’s Statement About Bitcoin Following Spot Bitcoin ETF Approvals

After greenlighting spot bitcoin exchange-traded funds (ETFs), U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler issued a connection clarifying the regulator’s stance connected bitcoin and cryptocurrency.

“Today, the Commission approved the listing and trading of a fig of spot bitcoin exchange-traded merchandise (ETP) shares,” the SEC president began, noting that the bureau disapproved much than 20 speech regularisation filings for spot bitcoin ETPs since 2018.

“Circumstances, however, person changed,” Gensler stressed, adding that the U.S. Court of Appeals for the District of Columbia held that “the Commission failed to adequately explicate its reasoning successful disapproving the listing and trading of Grayscale’s projected ETP.” Consequently, Gensler said:

Based connected these circumstances … I consciousness the astir sustainable way guardant is to o.k. the listing and trading of these spot bitcoin ETP shares.

Grayscale Investments, which seeks to person its bitcoin spot to a spot bitcoin ETF, was besides among the 11 issuers authorized by the SEC connected Wednesday to database and commercialized their spot bitcoin ETFs connected NYSE Arca, Nasdaq, and Cboe BZX Exchange.

Gensler further explained that the SEC’s support of spot bitcoin ETFs “should successful nary mode awesome the Commission’s willingness to o.k. listing standards for crypto plus securities.” Moreover, the SEC main emphasized that the support does not “signal thing astir the Commission’s views arsenic to the presumption of different crypto assets nether the national securities laws oregon astir the existent authorities of non-compliance of definite crypto plus marketplace participants with the national securities laws.”

Reiterating his long-standing presumption that astir crypto tokens are securities, Gensler stated: “As I’ve said successful the past, and without prejudging immoderate 1 crypto asset, the immense bulk of crypto assets are concern contracts and frankincense taxable to the national laws.” The SEC president concluded:

While we approved the listing and trading of definite spot bitcoin ETP shares today, we did not o.k. oregon endorse bitcoin. Investors should stay cautious astir the myriad risks associated with bitcoin and products whose worth is tied to crypto.

This week, Gensler besides issued respective warnings connected societal media astir crypto investing. On Monday, helium warned of assorted risks successful the crypto industry. On Tuesday, helium offered investment advice for crypto investors.

What bash you deliberation astir the connection by SEC Chairman Gary Gensler astir bitcoin and spot bitcoin ETF approvals? Let america cognize successful the comments conception below.