- SEC Chair Gensler says the agency is reconsidering their previous rejections of spot bitcoin ETF applications in light of recent court rulings ordering the SEC to provide more justification.
- Several asset managers have spot bitcoin ETF applications pending before the SEC that are now being re-evaluated.
- Gensler expressed continued concern about compliance issues, fraud, and bad actors in the broader cryptocurrency industry.
The Securities and Exchange Commission (SEC) has repeatedly denied applications for spot bitcoin exchange-traded funds (ETFs) over the past few years. However, SEC Chair Gary Gensler recently indicated the agency is taking a “new look” at these applications in light of recent court rulings.
Court Rulings on Spot Bitcoin ETFs
In August, a panel of judges ordered the SEC to reconsider its rejection of Grayscale’s application for a spot bitcoin ETF. The judges ruled that the SEC had to provide more justification for denying spot bitcoin ETFs while approving similar funds based on bitcoin futures.
This court decision, along with other recent rulings, are factoring into the SEC’s re-evaluation of spot bitcoin ETF applications, according to Gensler. Over a dozen asset managers, including BlackRock and Fidelity, currently have spot bitcoin ETF applications pending before the agency.
Gensler’s View on Crypto Industry Compliance
Beyond spot bitcoin ETFs, Gensler reiterated his broader concerns about compliance and fraud issues in the cryptocurrency industry.
He stated there has been “far too much fraud and bad actors in the crypto field.” Gensler added that the industry has exhibited significant “noncompliance not only with the securities laws but other laws around anti-money laundering and protecting the public against bad actors.”
The Treasury Department recently sent recommendations to Congress asking for more authority to crack down on illicit cryptocurrency activity. However, increased oversight and regulation of the crypto space continues to be debated.