SEC Chairman Gary Gensler has restated the agency's non-recognition of Bitcoin, despite the recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) on January 10.
In a statement on January 10, Gensler clarified, "While we approved the listing and trading of certain spot Bitcoin ETP shares today, we do not approve or endorse Bitcoin." This statement came just days after the historic approval.
Gensler reinforced the SEC's stance on cryptocurrencies, emphasizing the "speculative" nature of Bitcoin in contrast to the utility of precious metals like gold, silver, and platinum. He stressed that the regulator remains "value neutral" and refrains from taking a stance on specific companies, investments, or assets of exchange-traded products.
Despite this neutrality, Gensler pointed out that Bitcoin is frequently used for settling transactions involved in illicit activities. However, he acknowledged the evolving landscape, stating, "While we remain neutral, I would point out that the underlying assets in metal ETPs have consumer and industrial uses, whereas Bitcoin, in contrast, is primarily a speculative, volatile asset that is also used in illegal activities, including ransomware, money laundering, sanctions evasion, and terrorist financing."
Gensler cautioned investors to exercise caution due to the myriad risks associated with Bitcoin and products tied to cryptocurrency values. He reiterated the SEC's belief that the "vast majority" of crypto assets are investment contracts falling under the regulatory jurisdiction of the SEC. In recent lawsuits against Binance and Coinbase, the SEC listed a total of 68 crypto assets considered securities.
On January 10, the Securities Regulatory Commission granted approval for the 19b-4 applications of ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton.
