Gary Gensler's Bitcoin ETF Stance: A Tale of Inconsistency

A resurfaced video from 2019 has shed light on the "inconsistent" position of Gary Gensler, the current chairman of the United States Securities and Exchange Commission (SEC), regarding spot Bitcoin (BTC) products. In the clip, Gensler criticizes the SEC for its approach to blockchain regulation during a fireside chat at the MIT Bitcoin Expo.

A Change of Tune

Back in 2019, Gensler expressed his concerns about the absence of Bitcoin exchange-traded funds (ETFs) despite the existence of Bitcoin futures. He found it puzzling that the SEC had approved futures but not ETFs, stating that the laws governing both were quite similar. However, Gensler's current stance on spot Bitcoin ETFs couldn't be more different.

Twitter Reacts

Unsurprisingly, the crypto community on Twitter was quick to point out the inconsistency in Gensler's views. Market analyst Zack Voell sarcastically quoted Gensler, highlighting the contradiction in his statements. Another user lamented the absence of the "chill and normal Gensler" they had hoped for.

An Approval Drought

Despite the increasing demand for spot Bitcoin ETFs, the SEC has consistently rejected applications since 2017. Under Gensler's leadership, the trend has continued, with the SEC denying, delaying, or pushing back recent spot Bitcoin ETF applications due to concerns about market manipulation safeguards.

Grayscale vs. SEC

Asset manager Grayscale took legal action against Gensler's SEC after its bid to convert its existing Bitcoin trust into a spot ETF was rejected. The court ruled in favor of Grayscale, stating that the SEC's rejection was "arbitrary and capricious." Notably, the SEC chose not to appeal this decision.