FameEX Hot Topics | SEC Chair Gensler: We Follow Our Authority and Court Interpretations

Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), emphasized the SEC's commitment to operating within its legal authorities and court interpretations in an interview with Bloomberg. He shed light on how this approach applies to spot Bitcoin exchange-traded fund (ETF) applications. Gensler confirmed that SEC staff has been in discussions with various spot Bitcoin ETF issuers regarding their filings.

While discussing cryptocurrency and spot Bitcoin ETF applications, Gensler noted that there are currently "eight and a dozen filings in front of this agency" related to exchange-traded products linked to Bitcoin. He explained that the SEC responds to these filings in accordance with its legal authorities and the interpretations provided by the courts. He mentioned a recent court case, SEC v. Grayscale Investments, which involved the conversion of Grayscale's Bitcoin trust (GBTC) into a spot Bitcoin ETF. Initially, the SEC rejected the application, leading Grayscale to take the matter to court. The court ultimately ruled in favor of Grayscale, instructing the SEC to reconsider the application.

Gensler also highlighted the importance of the Treasury market, characterizing it as a top regulatory priority. He emphasized that the $26 trillion Treasury market plays a fundamental role in the entire U.S. capital system. It is vital for government funding, Federal Reserve policy, and the global dominance of the U.S. dollar. Gensler underscored the Treasury market's significance, describing it as "very consequential" and "very important."

In contrast, Gensler pointed out that crypto securities are considerably smaller in scale and do not have a role in government funding or monetary policy. He acknowledged that many investors in the crypto market have faced harm due to noncompliance issues, citing violations not only of securities laws but also of regulations enforced by the Commodity Futures Trading Commission (CFTC), Treasury Department, and the Financial Crimes Enforcement Network (FinCEN).

Gensler's comments illustrate the SEC's meticulous approach to spot Bitcoin ETFs and its ongoing commitment to regulating the crypto industry. While the SEC deals with these matters, it continues to focus on overseeing larger financial markets like the Treasury market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.