Gary Gensler’s attitude on cryptocurrencies remains unchanged, notwithstanding the SEC’s approval of a Bitcoin investment vehicle.

SEC Chairman Gary Gensler Cautious Despite Approval of Bitcoin ETFs

Despite the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), Chairman Gary Gensler remains cautious about cryptocurrency.

Approval Does Not Indicate Support

On the same day the SEC approved the Bitcoin ETF, Gensler clarified that the decision does not signify the SEC’s endorsement of Bitcoin or a shift in its overall stance on crypto assets. He emphasized that the approval was based on specific circumstances and reasons outlined in the approval order.

Context of Approval

Gensler highlighted that the approval of spot Bitcoin ETFs was prompted by changed circumstances and a court-ordered re-review of Grayscale Investments’ request for a spot bitcoin ETF. He stated that it was deemed appropriate to approve the listing and trading of these shares based on the situation at hand.

Cautionary Words for Investors

Despite the approval, Gensler reiterated the SEC’s stance on the risks associated with Bitcoin and other forms of cryptocurrency. He cautioned investors to be mindful of these risks when dealing with crypto-related products.

Clarification of Position

In simpler terms, Gensler emphasized that the approval of Bitcoin ETFs does not imply the SEC’s support for Bitcoin. He underscored the importance of caution in dealing with cryptocurrencies, given their associated risks.

Statement from Commissioner Hester Peirce

Republican SEC Commissioner Hester Peirce, also known as “crypto mom,” expressed concern about the SEC’s handling of spot Bitcoin ETFs. She criticized the agency for spending excessive time and resources preventing these applications from functioning, suggesting that they could have been approved much earlier had consistent rules been applied.

Conclusion

Gensler’s cautionary remarks underscore the SEC’s measured approach to cryptocurrency regulation despite recent developments. While the approval of Bitcoin ETFs marks a significant milestone, it does not signal a wholesale endorsement of Bitcoin or crypto assets by the SEC. Investors are urged to exercise caution and consider the associated risks when engaging with cryptocurrency-related products.

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