Although he finds the centralized character of Bitcoin ETFs humorous, SEC Chair Gary Gensler stresses respect for court orders in authorizing them.
Since the centralized structure of spot Bitcoin ETFs runs against Satoshi Nakamoto’s objective, SEC Chair Gary Gensler found it hilarious that others are calling the approval of these funds a historical milestone.
His words were: “Anyone who claims this week is historic is missing the point, which is ironic. This was all about centralization and the old ways of funding things.”
During an appearance with CNBC’s “Squawk Box” on January 12, Gensler made the remark and discussed the grounds for the SEC’s clearance, as well as some of Senator Elizabeth Warren’s concerns.
In light of the recent court ruling in the regulator’s action against Grayscale, Gensler said that the eleven spot Bitcoin ETFs were allowed by the SEC. The court found that the SEC’s rejection of a spot Bitcoin ETF was unfounded since the agency had previously authorized Bitcoin futures-based products.
According to Gensler, the SEC will always adhere to the court’s regulations since the agency has the highest regard for the law. Even though the ETFs have been greenlit, he maintains his critical position toward Bitcoin and says that this is not an endorsement of the commodity.
The head of the SEC has stated: “The cryptocurrency Bitcoin is not something we support or approve of. Investors may purchase the underlying non-security commodities asset via this instrument, which is known as an exchange-traded product.”
He went on to say that Bitcoin is still only a “volatile store of value” and isn’t being utilized for real transactions. Nevertheless, he did concede that the technology behind the ETFs is promising and that sanctioning them was the best course of action for the future.
Gensler went on to say that, unlike other cryptocurrencies, it views Bitcoin as a non-security commodity, on par with goods derived from gold and silver. He elaborated by saying the authority still considers most cryptocurrency tokens to be securities.
Warren’s criticism of the judgment was also touched upon in Gensler’s comments. The senator has long voiced his disapproval of the cryptocurrency industry, claiming that the SEC’s clearance was flawed on both a legal and policy level.
Gensler addressed these concerns by saying he respects different viewpoints but would continue to execute court orders. In his statement, he said:
“Our judgment is based on a thorough examination of the legal framework and the actual financial realities, but I do appreciate and respect Senator Warren’s concerns.”
Bitcoin ETF approval, despite SEC controversies, heralds a possible new age for bitcoin in the mainstream financial system.
In the first trading day after the clearance, there was a lot of activity, which shows that investors are interested and might lead to digital assets being accepted more widely.
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