'There Is An Inconsistent Approach To Bitcoin Etfs'

SEC Chairman Gary Gensler's critical comments about spot Bitcoin ETF approvals during a panel he attended at the 2019 MIT Bitcoin Expo have recently surfaced. At the time, Gensler was serving as a professor and sparked a significant discussion on cryptocurrencies.

A recently resurfaced video from 2019 shows Gary Gensler criticizing the U.S. Securities and Exchange Commission (SEC) for its "inconsistent" approach to spot Bitcoin products.

In this video, shared on social media, Gensler can be seen discussing blockchain regulation during an interview at the 2019 MIT Bitcoin Expo with SEC Commissioner Hester Peirce before he became the SEC Chairman. Gensler's criticism in the video focuses on the SEC's handling of Bitcoin ETFs.

He states, "Bitcoin futures, Ethereum futures, and similar products will continue to exist, but Bitcoin ETFs won't be accepted. This seems a bit inconsistent to me. Although the laws may not be entirely the same, they are nearly identical."

This video raises questions about Gensler's stance on spot Bitcoin ETFs following his appointment as SEC Chairman. It also highlights how regulators' approaches to cryptocurrencies and financial products can evolve and change over time.

Following this development, the crypto communities on the X platform reacted by emphasizing that Gensler's current views on spot Bitcoin ETFs are inconsistent with his past statements.

Market analyst Zack Voell shared on X, saying, "Gary Gensler is telling Gary Gensler he's wrong." Another X user made a lighthearted comment, adding, "It looks like we've missed the calm and normal Gensler."

These comments indicate that the crypto community and investors are closely monitoring the change in Gensler's approach to spot Bitcoin ETFs. The inconsistency between Gensler's previous statements and his current role may increase uncertainty regarding the regulatory future of the cryptocurrency market.

Gary Gensler says Gary Gensler is wrong. pic.twitter.com/sHGzHcUyIC

— Zack Voell (@zackvoell) October 28, 2023

So far, the SEC has only approved Bitcoin and Ethereum futures ETFs. However, up until 2017, the SEC was rejecting applications for spot Bitcoin ETFs, claiming that they were unprotected against market manipulation. This tradition continued under Gensler's leadership, with the SEC either rejecting or delaying the latest applications for spot Bitcoin ETFs.

Under Gensler's leadership, the SEC rejected the proposal to convert Grayscale's existing Bitcoin Trust into a spot ETF, leading to legal action. The court deemed the SEC's rejection as "arbitrary." However, the SEC chose not to appeal this decision.