Securities and Exchange Commission (SEC) Chair Gary Gensler spoke cautiously about the multiple applications for spot Bitcoin ETFs that the agency is currently reviewing. In a Bloomberg TV interview, he refrained from making any firm commitments. However, he did acknowledge that the SEC staff are actively reviewing several filings. “I’m not going to pre-judge,” Gensler stated, steering clear of making any remarks about future regulatory actions against Grayscale Investments or potential approvals of a single fund.
In the pipeline
Moreover, he touched upon additional proceedings initiated last month by the SEC. These proceedings aim to determine the fate of proposed spot Bitcoin ETFs from prominent asset management firms such as BlackRock, Invesco, Valkyrie, and Fidelity. Consequently, the additional steps will result in at least another month of delay in the ongoing review processes. Gensler emphasized that the Commission’s involvement in the assessment of these applications is crucial. Besides, he highlighted the role of various SEC divisions in these evaluations. “This is a time-tested process that goes back decades,” he noted.
The intricacies of SEC reviews
Gary Gensler elaborated that the SEC’s Division of Corporation Finance and Division of Trading and Markets scrutinize each filing meticulously. He revealed that these divisions work closely with what is known as the Disclosure Review Team within the SEC. This team responds and provides feedback to potential issuers, making them an integral part of the approval or disapproval process for going public. Additionally, Gensler pointed out that the SEC is considering not just one, but between eight to ten filings at the moment.
The SEC Chair’s measured remarks offer a snapshot of the agency’s approach to the ever-sensitive issue of cryptocurrency regulation. While the remarks did not provide a detailed roadmap for the industry, they did shed light on the complexities of the evaluation process. Significantly, the decision on these spot Bitcoin ETF applications remains pending, with multiple asset management giants waiting for the green light.
With neither a commitment to a specific timeline nor a clear stance on individual applications, the SEC maintains its carefully calibrated position. The industry, along with potential issuers, continues to wait, understanding that the regulator’s decision could influence the trajectory of cryptocurrency investments for years to come