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Admitting approval of ETF due to loss in Grayscale lawsuit, Gary Gensler: by no means endorsing Bitcoin

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Admitting approval of ETF due to loss in Grayscale lawsuit, Gary Gensler: by no means endorsing Bitcoin

Bitcoin futures and spot ETFs have been rejected for many years, but were both approved during the tenure of SEC Chairman Gary Gensler, who is criticized by the crypto community. Gensler cast the deciding vote in favor, but also acknowledged that this was the most viable option in light of the failed Grayscale case.

Bitcoin Spot ETF Vote Passes 3:2, Gary Gensler Also in Favor

According to a tweet by Fox Business reporter Eleanor Terrett, there was indeed a vote within the SEC on the approval of a Bitcoin spot ETF, with Chairman Gensler casting a favorable vote.

Comments on the tweet expressed surprise within the crypto community at Gary Gensler's pivotal swing vote.

Gary Gensler: By No Means Endorsing Bitcoin

Gary Gensler acknowledged in a statement that the approval of a Bitcoin spot ETF was forced due to the failure in the Grayscale case, emphasizing that the SEC always acts within legal norms.

He noted that from 2018 to the present under former Chairman Jay Clayton's tenure, the SEC had rejected over 20 proposals for spot Bitcoin trading products ETP, until the situation abruptly changed with the U.S. Court of Appeals for the D.C. Circuit finding that the SEC did not adequately explain the reasons for disapproving the Grayscale ETP.

Given these circumstances and more thorough discussions on product structures, Gensler believed that approving a Bitcoin spot ETF was the most viable option.

However, he pointed out that compared to non-securities commodity ETPs such as precious metals ETPs, Bitcoin still faces speculation, high volatility, and is used in illegal activities such as money laundering, ransomware, and terrorism financing.

Gensler emphasized:

Although we have approved the listing and trading of certain spot Bitcoin ETPs today, we have not approved or endorsed Bitcoin. Investors should exercise caution regarding the numerous risks associated with Bitcoin-related products.

SEC Officially Approves Bitcoin Spot ETF, Bitcoin Price Trails Ethereum

Commissioner Caroline Crenshaw: Deep Concerns for the Future

Caroline Crenshaw also criticized the approval of the Bitcoin ETF in her statement.

She expressed deep concerns over the approval, fearing that Bitcoin ETFs will flood into American families' retirement accounts, leaving them unable to bear the financial losses brought about by the prevalent fraud and manipulation in the Bitcoin market.

She believed that the supervisory sharing agreements signed by relevant parties were ineffective, as spot Bitcoin trading is global, and the SEC may not be able to effectively prevent market manipulation.

Crenshaw also cited the hacking of the SEC's Twitter account on the 10th as an example, pointing out that Bitcoin prices experienced drastic fluctuations as a result. She stated:

When new, more speculative, higher-risk products seek listing, a group of wealthy people always criticize the SEC for sticking to the rules. I am concerned that we are preparing for tomorrow's failures by approving ETFs today, and we, who are responsible for protecting investors, will ultimately pay a heavy price.

Another dissenting commissioner, Jaime Lizárraga, did not issue a statement.