Despite its past rejections, the SEC carries a new look on application forms for ETF Bitcoin cash. According to its president Gary Gensleralthough he believes thatcrypto industry shelters again too from drifts.
Gary Gensler has finally agreed to comment on the ongoing review of the numerous Bitcoin spot ETF applications piling up on the exchange regulator’s desk. In the past, the SEC has systematically rejected these applications on the grounds of manipulation risks.
However, the SEC has had to reconsider its position in part. Gensler concedes as much in an interview with CNBC. This new look at the case stems from the authority’s recent conviction by the courts.
A review of the SEC justice constraint
In the past, we have refused a number of such requests, but the courts in the District of Columbia have ruled on the matter”, explains the head of the American stock market watchdog.
“We are therefore re-examining the issue in the light of these court rulings”, he points out. In August, the SEC was criticized by the courts following a complaint from Grayscale. The asset manager wanted to convert its Bitcoin fund, GBTC, into a spot ETF.
For one of the three magistrates, “the refusal of Grayscale’s proposal was arbitrary and capricious.” The SEC is therefore being urged by the courts to revise its copy and, above all, its arguments. If it fails to do so, it could be prosecuted again.
Too many non-conformities in crypto
But Gary Gensler’s announcement that a review of Bitcoin cash funds is underway does not necessarily mean that approval is forthcoming. First and foremost, it’s his reasons for refusal that are being targeted by the courts.
The SEC chairman thus remains critical of the crypto industry, which he still accuses of multiple breaches of securities legislation. According to him, bad practices are still legion.
There is a lot of non-compliance, not only with securities laws, but also with other laws concerning anti-money laundering and protecting the public from bad actors,” Gensler taunts.
A wild west still to be regulated
This is also the view of the Managing Director of the IMF, who spoke this week in Seoul at a conference dedicated to digital currencies. For Kristalina Georgieva, the Wild West is not yet history.
The crypto sector “hasn’t earned itself a very glorious reputation over the last 15 years. And it’s not out of the woods yet,” she says, arguing that governments should implement several of her regulatory recommendations.
The problem is that this strong adoption of cryptoactives could undermine macro-financial stability”, argues the IMF official to justify a new turn of the screw. Citing internal work, she warns that “cryptoization” is a risk.
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