SEC Chair Gensler Keeps Quiet on Bitcoin ETF Plans After Grayscale Ruling

Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has remained tight-lipped about the agency’s plans for Bitcoin exchange-traded funds (ETFs) following a recent court ruling that requires the SEC to reconsider its rejection of Grayscale Investments’ ETF application.

Chairman Gensler, who was speaking at a Securities Enforcement Forum event in Washington, was asked about the SEC’s intentions regarding Bitcoin ETFs. In response, he provided little insight into the agency’s next steps, stating that such matters are currently with the SEC staff. 

He emphasized that he would not prejudge the situation and would allow it to unfold before any decisions were made. Gensler also declined to provide any information about the timing or order in which Bitcoin ETF applications would be considered by the SEC.

The cryptocurrency industry, including Grayscale Investments, eagerly awaits the outcome of a court order that invalidated the SEC’s initial rejection of Grayscale’s proposal to convert the Grayscale Bitcoin Trust (GBTC) into an ETF. Prominent financial institutions like Fidelity and BlackRock are closely watching to see how the SEC will approach pending spot ETF applications.

Grayscale Investments, a subsidiary of Digital Currency Group, has been at the forefront of the ETF debate.

When questioned about other court cases the SEC is currently pursuing against crypto firms, Gensler refrained from commenting, indicating that the cases are in the hands of the courts. He emphasized that he would let these legal processes run their course.

“I’m going to let each of these crypto exchange cases speak for themselves, and they’re in front of jurists, They’ll play themselves out where they play themselves out.”

he said.

During his speech at the event, Chairman Gensler repeatedly criticized the cryptocurrency industry for what he described as rampant non-compliance. He spoke about the industry’s relatively small scale compared to traditional capital markets. He noted that the global crypto market might be valued at around a trillion dollars, with the U.S. share being even less.

“We have a $110 trillion capital market, Crypto worldwide might be a trillion, but in the U.S., it’s less. So just by that, it’s well less than one percent of U.S. capital markets.”

Gensler stated.

The lack of specific information regarding the SEC’s plans for Bitcoin ETFs leaves the cryptocurrency industry in a state of uncertainty. The crypto community is eagerly anticipating regulatory clarity to help shape the future of digital assets within the traditional financial framework.