SEC Chair Gary Gensler comments on prospects for spot Bitcoin ETF

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said he is not ready to discuss approval of applications for spot Bitcoin (BTC) ETFs.

Gensler, speaking on the sidelines of the Healthy Markets Association conference on Nov. 29, said he would not “pre-judge” the matter of Bitcoin spot ETFs.

He did however note his concerns about the crypto industry as a whole:

“This is a field that is rife with bad actors and rife with fraud and manipulation and money laundering.”

Gary Gensler, SEC Chairman

Gensler considers the process of application approval to be reliable and time-tested. He also noted that SEC staff have been dealing with similar cases for decades and have the proper level of qualifications.

“This is a time tested process that goes back decades. The staff of the SEC, it’s called the Disclosure Review Team, but in that group, they respond and give feedback to potential issuers.”

Gary Gensler, SEC Chairman

In addition to spot Bitcoin ETFs, the head of the SEC was asked about his advice to crypto investors and users interested in this industry. Gensler said such people need to “beware, be cautious, be careful.”

Despite the lack of any significant updates from Gensler, SEC officials are actively discussing the creation of a spot Bitcoin ETF with market participants. Thus, on Nov. 20, representatives of BlackRock and Nasdaq met with the SEC regarding a spot Bitcoin ETF. The parties discussed the model for redeeming shares of the iShares Bitcoin Trust.

However, the fate of the current applications remains unresolved. Earlier this month, the SEC delayed a decision on Bitcoin ETFs from Franklin Templeton and Hashdex. As in previous cases, the agency cited a “lack of transparency” and the risk of manipulation.