SEC Chair Gensler’s Approval Of Bitcoin ETFs Met With Criticism And Contradictions

US Securities and Trade Fee (SEC) Chair Gary Gensler’s current approval of Bitcoin ETFs has stirred up controversy as he concurrently voiced criticism and unfounded claims towards Bitcoin and the broader crypto trade.

In a CNBC interview, Gensler made statements that raised eyebrows amongst trade contributors.

Bitcoin ETFs Approval Fails To Shift Genler’s Stance On Crypto

Whereas acknowledging the approval of the ETFs, Gensler emphasised that the SEC doesn’t endorse or approve Bitcoin itself. The SEC chair referred to Bitcoin as a “speculative and volatile asset”, highlighting its alleged use for illicit actions and cash laundering. 

Gensler dismissed the notion that Bitcoin can function a retailer of worth or a extensively accepted fee technique, implying that its main utility lies in illicit transactions.

Curiously, one of many CNBC interviewers, Joe Kernen, challenged Gensler’s claims. Kernen identified that, compared to the 20,000 items of {dollars} used for cash laundering, solely 33 items of Bitcoin had been related to illicit activities. 

Kernen additionally highlighted Bitcoin’s robustness, evaluating it to gold and its longstanding use as a financial asset. He emphasised that the Bitcoin blockchain has operated flawlessly for trillions of transactions, underscoring its reliability.

Gensler, nevertheless, largely sidestepped Kernen’s remarks and continued his critique of Bitcoin. The SEC chair expressed concern in regards to the centralization that has occurred within the Bitcoin market, regardless of its preliminary imaginative and prescient of decentralization. 

Gensler argued that the approval of Bitcoin ETFs has contributed to this centralization by aligning the cryptocurrency with conventional monetary methods, differing from the preliminary mission of Satoshi Nakamoto.

SEC Chair Casts Doubt On Ethereum ETF Risk

In response to Senator Elizabeth Warren’s criticism of the SEC’s decision to approve Bitcoin ETFs, Gensler defended the company’s actions, stating that he respects the regulation and believes that approving the ETFs was the right path ahead.

Relating to the potential of an Ethereum ETF, Gensler expressed skepticism. He labeled Ethereum as a safety, in distinction to Bitcoin, which he deemed a non-security token. 

Total, SEC Chair Gensler’s combined messaging, approving Bitcoin ETFs whereas concurrently criticizing the cryptocurrency, has sparked debate and confusion inside the crypto neighborhood. 

Because the trade continues to evolve, the implications of those contradictory statements and the SEC’s regulatory strategy might be intently scrutinized.

At current, the value of Bitcoin stands at $43,500, representing a lower of almost 7% over the previous 24 hours, coinciding with the graduation of ETF buying and selling.

The long-term results of those index funds on the value of the most important cryptocurrency are but to be decided. It stays to be seen how the introduction of those ETFs will impression Bitcoin’s worth over time.

Featured picture from Shutterstock, chart from TradingView.com