Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), revealed the SEC’s evolving stance on spot Bitcoin exchange-traded fund (ETF) applications in light of recent judicial decisions. In an interview with CNBC, Gensler acknowledged that recent court rulings have prompted the SEC to reconsider its prior denials of Bitcoin ETF applications, prompting a reevaluation of the regulatory position.
Gensler shared insights into the SEC’s renewed approach, emphasizing that the regulator is currently reviewing “between eight and a dozen filings.” He underscored his commitment to the commission’s impartiality in the evaluation process, stating, “I’m chair of a commission. I’m not to prejudge anything. So, that’s going through the process right now.”
Referencing the Grayscale case, Gensler highlighted the impact of court decisions, explaining, “As you might know, we had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that. And so we’re taking a new look at this based upon those court rulings.”
When questioned about objections to the court rulings, Gensler emphasized the SEC’s adherence to the laws enacted by Congress and their interpretation by the courts. He also acknowledged the prevalence of noncompliance within the crypto field.
In recent weeks, the SEC engaged in discussions with major spot Bitcoin ETF issuers, including BlackRock, Fidelity, Grayscale, and Franklin. Analysts suggest that these frequent conversations signal potential approval in the near future.
Simultaneously, the SEC has deferred its decision on spot Ethereum ETF applications filed by Invesco and Galaxy Digital. Analysts speculate that the SEC may consider approving multiple applications concurrently to ensure equitable competition among competitors.
Despite the uncertainty surrounding Bitcoin ETF approvals, a report from Matrixport, a crypto financial services platform, suggests that the crypto market, including Bitcoin, will thrive in 2024 even if the SEC rejects Bitcoin ETFs. The report advises crypto investors to monitor Bitcoin dominance charts and anticipates potential positive impacts on the market from the potential return of former U.S. President Donald Trump in the 2024 election year.
