SEC Chair Gensler: We Do Things According to Our Authorities and How Courts Interpret ThemIn a recent interview with Bloomberg, SEC Chair Gary Gensler discussed the agency's approach to cryptocurrency and spot bitcoin exchange-traded fund (ETF) applications. This comes after the SEC's decision to expand central clearing in the Treasury market. Engagement with Spot Bitcoin ETFsGensler acknowledged that the SEC staff has engaged with various issuers of spot bitcoin ETFs regarding their applications. He mentioned that the agency has between eight and a dozen filings in front of them and that staff responds to market participants' filings.
Legal Matters and Court InterpretationThe SEC chairman emphasized that the agency operates according to its authorities and how courts interpret them. He referred to a recent court case involving the SEC v. Grayscale Investments, where the court ruled in favor of the crypto asset manager, instructing the SEC to reconsider the application for a spot bitcoin ETF.
Regulatory Priorities and Treasury MarketGensler highlighted the significance of the $26 trillion Treasury market, placing it as a top priority on his regulatory agenda. He stressed its crucial role in government funding, Federal Reserve policy, and global dollar dominance, emphasizing its consequential and important nature.
Crypto Securities and NoncomplianceIn contrast, Gensler pointed out that crypto securities are much smaller in scale compared to the Treasury market. He emphasized that many investors have been harmed in the crypto market due to noncompliance with securities laws, as well as regulations from other agencies such as the CFTC, Treasury Department, and FinCEN.
