Gary Gensler Critiques SEC’s Bitcoin Policy in Resurfaced Video
In a reemerged 2019 video, Gary Gensler previously expressed dissatisfaction with the perceived inconsistency in the U.S. securities regulator’s approach to spot Bitcoin products.
The recently circulated video clip, resurfaced on social media, showcases former SEC official Gensler engaged in a fireside chat on blockchain regulation at the 2019 MIT Bitcoin Expo. The conversation features Gensler discussing blockchain with Hester Peirce, a Commissioner at the United States Securities and Exchange Commission.
“Bitcoin futures, and I think Ethereum futures and so forth, will exist, and Bitcoin ETFs have not, and that feels a little inconsistent to me […] It feels a little inconsistent,” Gensler commented.
“Even though the laws aren’t exactly the same, they’re quite similar,” he added.
Presently, the SEC has only approved Bitcoin and Ether futures-based ETFs.
Since at least 2017, the SEC consistently rejected applications for spot Bitcoin ETFs. This trend persisted during Gary Gensler’s tenure, where he either denied, delayed, or deferred recent spot Bitcoin ETF applications due to concerns about inadequate protections against market manipulation.
Asset manager Grayscale filed a lawsuit against Gensler’s SEC after their proposal to convert their existing Bitcoin trust into a spot ETF was declined. A court subsequently ruled that the SEC’s rejection was “arbitrary and capricious.” The SEC chose not to challenge this decision.
