In a recently resurfaced video from 2019, Gary Gensler, now the head of the United States Securities and Exchange Commission (SEC), criticized the SEC’s approach to spot Bitcoin products, calling it “inconsistent.”
The video, which has gained renewed attention on social media, captures a discussion on blockchain regulation between Gensler and SEC Commissioner Hester Peirce during the 2019 MIT Bitcoin Expo.
During the conversation, Gensler expressed his views on the regulatory landscape for Bitcoin and other cryptocurrencies.
He pointed out the perceived inconsistency in the treatment of Bitcoin futures and Bitcoin exchange-traded funds (ETFs). Gensler noted that while Bitcoin futures and possibly Ethereum futures were allowed, Bitcoin ETFs had not received approval.
He highlighted the similarity in the underlying technologies and suggested that this inconsistency was a concern.
In the wake of the video’s resurgence, the cryptocurrency community on social media platforms, including Twitter, couldn’t help but draw attention to the contrast between Gensler’s past and present views on spot Bitcoin ETFs.
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Some users humorously remarked on the change in Gensler’s stance, with one market analyst posting, “Gary Gensler says Gary Gensler is wrong,” and another user commenting on the shift in his approach.
As of now, the SEC has granted approval for Bitcoin and Ether futures ETFs but has consistently rejected spot Bitcoin ETF applications since 2017.
This pattern of rejections continued under Gensler’s leadership at the SEC. Gensler has justified these rejections by citing concerns about the lack of adequate protections against market manipulation in spot Bitcoin ETFs.
Notably, Gensler’s SEC faced a lawsuit from asset manager Grayscale after it rejected the company’s proposal to convert its existing Bitcoin trust into a spot ETF.
A court ultimately ruled that the SEC’s rejection of the application was “arbitrary and capricious,” and the SEC did not pursue an appeal against this decision.
The resurgence of this video has sparked discussions and debates about the evolving regulatory landscape for cryptocurrencies in the United States and the SEC’s role in shaping it.
It remains to be seen how Gensler’s current position as SEC chairman will influence future decisions regarding spot Bitcoin ETFs and other cryptocurrency-related matters.
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