Dogecoin Creator Billy Markus Responds After SEC Chair Gary Gensler Says Bitcoin (BTC) Is Not a Security The Daily Hodl
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The US Securities and Exchange Commission (SEC) Chair Gary Gensler has asserted that crypto regulations exist in the United States. He insinuated that stakeholders in the crypto industry do not like these regulations, which is why they claim they do not exist. Meanwhile, Gensler affirmed that Bitcoin is not a security.
Gary Gensler Says There Are Crypto Regulations
The SEC Chair mentioned during an interview on CNBC that crypto regulations exist in the United States. He added that “not liking the rules is not the same as, there aren’t rules,” alluding to industry stakeholders who continue to demand regulatory clarity in the country.
Gary Gensler remarked that many firms profited from the public’s interest in crypto without proper disclosures. The SEC Chair also raised the “classic securities” case of how many of these firms are raising money, which brings such situations under the Commission’s purview since they are concerned with investor protection.
His comments come following the SEC Congress hearing in which he and the five Commissioners appeared before the US House Financial Services Committee. Rep Patrick McHenry claimed that the Commission needed to focus on capital formation and providing crypto stakeholders with clarity rather than “taking ad hoc action to sue people and make headlines.”
Meanwhile, Coinbase recently appealed the SEC’s denial of its 2022 rulemaking petition. The exchange is one of the crypto stakeholders that has continued to pressure the Commission to provide a clear legal framework for the industry.
Bitcoin Is Not A Security
Gary Gensler stated during the interview that Bitcoin is not a security. He noted that this is a view he and his predecessor Jay Clayton have shared right from the onset. Gensler and the SEC’s view that Bitcoin isn’t a security is what easily led to the launch of the Spot Bitcoin ETFs in January earlier this year. Although Gensler didn’t comment about Ethereum, the second-largest crypto token by market by cap is also belived not to be a security.
The SEC’s approval of the Spot Ethereum ETFs indicated that the Commission considers ETH as a commodity just like Bitcoin. Meanwhile, the regulator had for a while now referred to several altcoins as securities. However, in a recently filing in its case against Binance, the SEC stated that it regrets the confusion it has caused with classifying crypto assets as ‘crypto asset securities.’
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Your Path to High ROI Investments: Dogecoin (DOGE), Shiba Inu (SHIB), and Furrever Token (FURR) for Maximum … Gary Skentelbery
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The U.S. Securities and Exchange Commission (SEC) finally gave a nod for the first spot Bitcoin ETF after months of keeping investors waiting on the sidelines. However, SEC Chair Gary Gensler quickly managed to distance himself and the SEC from Bitcoin and crypto.
Cathie Wood Slams Gary Gensler
After approving the first spot Bitcoin ETF in the US, Gensler emphasized that this is not an endorsement of Bitcoin itself. Investors shall exercise caution due to the numerous risks associated with Bitcoin and other products linked to the cryptocurrency, he added.
The SEC Chair’s remarks highlight the regulatory body’s stance on providing access to certain Bitcoin-related financial instruments while underscoring the need for investors to be mindful of the inherent risks in the cryptocurrency market.
Cathie Wood, the founder of Ark Investment Management LLC, expressed surprise at Securities and Exchange Commission Chair Gary Gensler’s statement following the agency’s approval of approximately a dozen exchange-traded funds directly holding Bitcoin.
In a Bloomberg Radio interview on X, Wood remarked that Gensler’s comments seemed to criticize the entire cryptocurrency space, describing it as a typical reaction to disruptive innovation. Wood suggested that the established regulatory framework was clashing with the emerging landscape of digital assets, emphasizing the curiosity of many individuals about this evolving space.
Notably, an application by Ark, in collaboration with 21Shares, was among the spot Bitcoin ETFs granted approval by the SEC for trading on Thursday.
Bitcoin ETF Approval Opens A New Chapter for BTC
The SEC’s decision represents a shift from its decade-long opposition to spot Bitcoin ETFs. Cathie Wood remarked that this development signals a new chapter for Bitcoin, expressing optimism about becoming one of the top providers with this Bitcoin ETF. Wood acknowledged the SEC’s cautious approach, suggesting that institutions will need to navigate the new framework with increased diligence.
Bitcoin experienced a modest ascent, briefly reaching $47,000, following the approval by the US Securities and Exchange Commission of exchange-traded funds directly investing in the token. Traders are now observing the products to gauge the level of funds they attract.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
On Tuesday, January 9, U.S. Senators, JD Vance and Thom Thrills sent a letter to the Securities and Exchange Commission (SEC) demanding an answer to the recent X account hack and Bitcoin ETF approval farce. In addition, according to Fox Journalist, Eleanor Terrett, more congressional letters are set to hit SEC Chairman Gary Gensler’s inbox.
Also Read: VanEck Advisor Labels SEC’s Fake Bitcoin ETF Approval Post As ‘Inside Job’
Senators’ Stance On Recent Bitcoin ETF Controversy
In a joint letter addressed to Gary Gensler, the Senators expressed deep concern over the agency’s social media communication regarding the errant approval of Spot Bitcoin ETFs. They highlighted a critical timeline where the SEC’s official X account initially announced approval, causing a surge in Bitcoin’s value. However, they later clarified the announcement as unauthorized, citing that their social media account was hacked.
Moreover, the letter emphasizes the potential impact on investors and questions the SEC’s internal cybersecurity procedures. Senators are demanding clarity, urging the SEC to address the nature of the breach, provide details on the investigation, and explain plans to rectify financial losses for affected investors. The SEC is urged to respond to the inquiries by January 23, 2024, as Vance and Thrills call for transparency amid this significant regulatory mishap.
In addition, the letter questioned the regulatory body if any employee was behind the account breach or if a third party was to be blamed. Furthermore, the Senators deemed the false Spot Bitcoin ETF approval post as a “colossal error” on the SEC’s part. In the letter, they stated, “It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.”
SEC Receives Massive Backlash
After the SEC’s X account was compromised and the fake ETF approval post sent shockwaves through the industry, U.S. regulatory agency attracted criticism. In a recent post on X, Rep. Bill Huizenga heavily criticized Gary Gensler. Quoting the SEC Chair’s tweet, Huizenga wrote, “Does this mean we can blame more of the @secgov’s horrible rulemaking and so-called regulation by enforcement on a ‘compromised account’?”
Recently, Bloomberg ETF analyst Eric Balchunas held SEC responsible for the event. According to a post on X by Balchunas, it was a result of a “scheduled tweet gone bad.” In addition, Anthony Scaramucci, the Former White House Communications Director, disputed SEC Chair Gensler’s claim that the agency’s X account was compromised. Scaramucci asserted that a SEC staff member prematurely shared the news. He perceives it as the “amateurish and dishonest nature of the current SEC leadership regime.”
Also Read: US SEC Faces Massive Backlash Over Fake Spot Bitcoin ETF ‘Approval’ Post
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The latest quick additional comments to some spot Bitcoin ETF issuers’ S-1 submissions by the U.S. Securities and Exchange Commission (SEC) raising concerns in the crypto market, while people still hope for a spot Bitcoin ETF approval this week. The final deadline for the SEC to decide on Ark 21Shares spot Bitcoin ETF is on January 10, which will provide clear indications to the market.
Rising Worries On Gary Gensler Blocking Spot Bitcoin ETF
More amendments to the spot Bitcoin ETF applications are now expected as the U.S. SEC issued additional comments on pending spot Bitcoin ETF applicants’ S-1 forms.
Perianne Boring, President and founder of the Chamber of Digital Commerce, hopes she is wrong in her interpretation of the delay in spot Bitcoin ETF approval. However, she is more worried about SEC Chair Gary Gensler coming up with another way to block approvals. She claims that “SEC has more tools at its disposal to block spot bitcoin ETFs from coming to market. Chair Gensler doesn’t want to go down without a fight. I’m hoping for a successful launch this week.”
Earlier today, She noted the latest SEC comments as a delay signal from the agency. However, Bloomberg ETF analyst James Seyffart asserts that the issuance of additional comments is not necessarily a move to delay the ETF approval.
Commenting on the latest Perianne Boring’s post, James Seyffart said “This is nightmare fuel and the prospect of exactly this keeps me awake at night.”
Interestingly, experts have shared a caveat on how a 5-member SEC Commission could potentially delay spot Bitcoin ETF approval. Each commissioners including Gary Gensler, Caroline Crenshaw, Hester Peirce, Jaime Lizárraga, and Mark Uyeda have the right under 17 C.F.R. Section 201.431 to request a review and full commission vote even if a matter is assigned and approved via delegated authority.
Also Read: Spot Bitcoin ETF Unveiling Potential Premiums & Regulatory Hurdles Post Approval
John Deaton, attorney for 75,000 XRP holders, reacted to Gary Gensler’s latest X post for people investing in crypto assets. Deaton suggests crypto community to judge when reading anything from a transient regulator like Gensler regarding his biased views on crypto.
He again criticized Gensler for meeting Sam Bankman-Fried but denied to a private meeting with Coinbase CEO Brian Armstrong and CLO Paul Grewal.
Also Read: XRP Whale Moves 26 Mln XRP As Price Jumps Past $0.57
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto asset management firm Hashdex met with the U.S. Securities and Exchange Commission (SEC) regarding the required changes to the Hashdex spot Bitcoin ETF application, according to the latest memorandum. The move comes as the SEC is obliged to consider approving the United States’ first spot Bitcoin ETF tracking BTC price.
Hashdex Met With the SEC Before Deadline
After a constructive meeting between the U.S. SEC and spot Bitcoin ETF issuers last week to make the required changes, Hashdex met again with the SEC on Tuesday, December 26.
However, it seems the meeting was different from recent meetings as Hashdex met with SEC Chair Gary Gensler’s office, raising speculation within the markets. Bitcoin ETF issuers have had meetings and calls with the SEC’s trading and markets division and corporate finance division.
Bloomberg analyst James Seyffart also noted Hashdex executives meeting Samantha Ostrom from the SEC Office of Chair. Ostrom met with Hashdex chief investment officer Samir Kerbage, Tidal Financial Group’s Michael Venuto, K&L Gates’ Richard Kerr and Peter Shea, and Neel Maitra from law firm Wilson Sonsini Goodrich & Rosati.
The discussion was regarding NYSE Arca’s proposed rule change to list and trade shares of Hashdex Bitcoin ETF under the Rule 8.500-E.
Also Read: Grayscale Makes Amended Bitcoin ETF Filing After Silbert’s Exit
Spot Bitcoin ETF Gains Ground
Stock and crypto markets await approval of a spot Bitcoin ETF by the US SEC amid constructive talks. Spot Bitcoin ETF issues are making final changes to the prospectus regarding ‘cash creates’, with the SEC likely to approve only cash-only redemptions.
Meanwhile, Grayscale has made another amended S-3 filing with the securities regulator to convert GBTC to spot Bitcoin ETF. It follows Grayscale Investments chairman Barry Silbert stepping down from the position.
BlackRock, Pando Asset, and Hashdex recently submitted updated S-1 filings with the SEC. Hashdex has named BitGo as Bitcoin ETF custodian.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Dogecoin Co-Founder Calls SEC Chair Gary Gensler ‘Useless In Every Single Way’: ‘Never Laid Out Any Actua Benzinga
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Dogecoin Co-Founder Calls Out ‘Useless in Every Single Way’ SEC Chair Gary Gensler The Daily Hodl
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While SEC Chair Gary Gensler acknowledged constructive dialogue in Bitcoin ETF applications, he also warned of persisting non-compliance issues in the crypto space.
On Thursday, December 14, SEC Chair Gary Gensler revealed that the agency’s reevaluation of applications for a spot bitcoin exchange-traded fund (ETF) incorporates insights from recent court decisions. This marks a notable shift in the SEC’s stance, which has historically rejected several Bitcoin ETF applications.
The turning point came with a panel of judges instructing the SEC to reassess a previously unsuccessful bid from Grayscale Investments, signaling a potential shift in the regulatory landscape. Currently, the SEC is reviewing more than a dozen Bitcoin ETF applications submitted by major asset managers, including industry giants like BlackRock and Fidelity.
The SEC’s “new look” at spot bitcoin ETF applications reflects a changing perspective, influenced by legal developments and court rulings. The ongoing deliberations and potential approval of such ETFs could significantly impact the cryptocurrency market and open new avenues for institutional investors to participate in the Bitcoin market.
Investors are closely monitoring these developments as the SEC navigates the complex regulatory terrain surrounding cryptocurrency investment products. Speaking to CNBC during his interview on Thursday, Gensler said:
“We had in the past denied a number of these applications, but the courts here in the District of Columbia weighed in on that. So we’re taking a new look at this based upon those court rulings.”
In August, a trio of judges from the US Court of Appeals for the D.C. Circuit mandated that the SEC undertake a reassessment of Grayscale’s application for a Bitcoin ETF position. This directive came after the asset management company initiated legal action against the agency last year, contesting the rejection of its proposal for transforming its flagship GBTC fund. The court specifically scrutinized the SEC’s disparate treatment of spot Bitcoin ETFs versus similar funds centered on futures contracts, which the regulatory body had previously sanctioned.
In September, Gary Gensler informed legislators that he was scrutinizing both the aforementioned court ruling and “numerous submissions related to Bitcoin exchange-traded products”.
Non-Compliance in Crypto
Gensler restated his belief that the cryptocurrency industry exhibits considerable noncompliance with current securities laws. Speaking to CNBC, the SEC chair:
“There’s been far too much fraud and bad actors in the crypto field. There’s a lot of noncompliance, not only with the securities laws, but other laws around anti-money laundering and protecting the public against bad actors there.”
The industry’s attention has turned to Anti-Money Laundering (AML) due to congressional appeals and directives from the Treasury Department. Recently, the Treasury presented suggestions to legislators, urging them to grant increased authority and sanctions tools to effectively pursue illicit actors within the cryptocurrency sector.
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