- The SEC chairman announced that the court’s decision in the Grayscale versus SEC case will influence the decision-making
- The chairman also took the opportunity to once again condemn the crypto market
The Chairman of the US Securities and Exchanges Commission (SEC) – Gary Gensler – has made a statement regarding the approval of all 11 spot Bitcoin ETF applications. All applications were fast-tracked a few minutes ago and all are expected to start trading tomorrow.
In his statement, Gensler specifically stated that, unlike previous rejections, there were some factors that resulted in the approval of all spot Bitcoin ETFs. The statement mentioned the SEC vs. Grayscale, indicating the case’s influence on the approval decision. The explanation read,
“The United States Court of Appeals for the District of Columbia found that the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed ETP (…) Based on these circumstances and those discussed in more detail in the approval order, I believe the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.”
Grayscale – the US digital currency asset management company – had taken the commission to court after it rejected its request to convert its GBTC into a spot Bitcoin ETF. After a heated court battle, the court ruled that the committee had no good grounds for its rejection and the judge asked the committee to reconsider its decision.
Yes to Bitcoin ETF is not yes to crypto
Despite admitting defeat, the SEC chairman has not changed his position on the cryptocurrency market or Bitcoin. The chairman has stated that the approval “should not in any way be a sign of the Commission’s willingness to adopt listing standards for crypto assets.” He further added:
“Also, the approval does not indicate the Commission’s views on the status of other crypto assets under the federal securities laws, or on the current state of non-compliance of certain crypto asset market participants with the federal securities laws. As I have said (…) the vast majority of crypto assets are investment contracts and therefore subject to federal securities laws”
Chairman Gensler in particular has actively spoken out about the ‘dangers’ of the crypto market even before the approval announcement. Earlier this week, the chairman posted two tweets about the crypto market on his official X account. Both tweets warned users about the downside of investing in cryptocurrencies. Read one tweet,
If you are considering an investment with crypto assets, be careful.
Crypto assets may be marketed as new opportunities, but there are serious risks involved.
Read @SEC_Investor_Ed‘s director Take:
— Gary Gensler (@GaryGensler) January 9, 2024