REGULATION

SEC Chairman Gary Gensler Interview: Will reevaluate Bitcoin spot ETFs based on court rulings

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SEC Chairman Gary Gensler Interview: Will reevaluate Bitcoin spot ETFs based on court rulings

Chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler discussed cryptocurrency, the application of AI in the financial sector, and SEC policy-making in an interview with CNBC. He also teased the interview on Twitter.

Gary Gensler: AI as Revolutionary as the Internet

Gary Gensler stated that he began researching AI-related issues while teaching a blockchain course at MIT, and he believes that AI is as revolutionary a technology in this era as the internet.

However, he emphasized that while the hottest topic is generative AI, AI has gradually been involved in applications in the financial sector. At this point, whether in financial consulting or trading applications, the interests of investors must be placed above those of investment advisors and brokers.

Is AI the Next Target for Regulation? SEC Chairman Gary Gensler: Some AI Applications May Involve Securities Laws

Gary Gensler Evaluates US, European, and Asian Policy Making

Gensler claims to prefer the U.S. approach:

  • Europe: Decision-making through parliament.

  • U.S.: Leading in the private sector and technologically.

  • China: Authoritarianism allows the government to access data from 1.4 billion people, which is China's advantage.

SEC to Review Bitcoin Spot ETF in Accordance with Court Rulings

Gensler was asked about the progress of reviewing the Bitcoin spot ETF.

He said:

We've received over a dozen ETF applications, and as the SEC Chairman, I can't predict anything. As everyone has seen, the SEC has rejected many such applications in the past, but the U.S. courts have weighed in on this before, so the SEC will also reexamine ETF applications based on these court rulings.

Although the SEC lost the Grayscale lawsuit, Gensler seems to have a great deal of respect for U.S. judicial decisions. He expressed his views on the lawsuit to the host:

Everything we do at the SEC is based on legislation from Congress and how the courts interpret the statutes.

However, he still emphasized the abundance of fraudulent activities in the crypto space.

Gary Gensler: Over a Hundred Crypto Fraud Cases Uncovered

Gensler reiterated that there are too many violations in the crypto space, with many so-called trading platforms acting as intermediaries involved in various businesses that traditional finance does not allow. The SEC has successfully resolved 150 to 175 cases, and we have found that the crypto space is indeed like the Wild West, and it is global. Securities laws can help investors avoid fraud and manipulation.

He ended by expressing his great honor at being able to serve as the SEC Chairman:

I can't believe that a boy from Baltimore, whose parents didn't go to college, has the opportunity to be the SEC Chairman. I'm honored to be one of the 5,000 employees at the SEC.