During a panel at the 2019 MIT Bitcoin Expo, Gary Gensler, the current chairman of the United States Securities and Exchange Commission (SEC), criticized the regulator for its inconsistent approach to spot Bitcoin ETF approvals. A recently resurfaced video clip from the event shows Gensler discussing blockchain regulation in a fireside chat with SEC commissioner Hester Peirce. Gensler expressed his belief that Bitcoin futures and Ethereum futures would exist, but questioned why Bitcoin ETFs had not been approved, calling the situation inconsistent. He noted that while the laws governing these products may not be exactly the same, they are quite similar. This old video has gained attention on social media, prompting comparisons to Gensler’s current stance on spot Bitcoin ETFs.
Since 2017, the SEC has been rejecting spot Bitcoin ETF applications, a trend that has continued under Gensler’s leadership. He has delayed or pushed back recent applications, citing concerns about the lack of adequate market manipulation protections in these funds. This approach has drawn criticism from the crypto community, who have pointed out the contrast between Gensler’s past remarks and his current actions regarding spot Bitcoin ETFs. Notably, asset manager Grayscale sued the SEC after its bid to convert its existing Bitcoin trust into a spot ETF was rejected. A court later ruled that the SEC’s decision to reject the application was arbitrary and capricious, and the SEC chose not to appeal the ruling.
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