What Topic Did Gary Gensler Backtrack On?

The chairman of the SEC appears to have reconsidered his stance on Bitcoin ETFs following a lawsuit won by Grayscale; however, he has not clearly expressed this change.

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler hinted at a reevaluation of the regulatory body's stance on Bitcoin exchange-traded products following a recent court decision.

In an interview with CNBC on December 14, Gensler was asked about the "eight to a dozen applications" currently awaiting SEC approval. Gensler mentioned that they had rejected some applications in the past and suggested that court decisions could influence the SEC's stance on Bitcoin, stating:

“We're taking a fresh look, grounded in how do these markets work, how do these products work.”

When asked if he was referring to Grayscale, Gensler did not provide a direct answer but emphasized that everything within the agency is within the framework of "laws enacted by Congress and court decisions." In August, a judge overturned the SEC's decision to reject the ETF proposal from Grayscale Investments' Bitcoin Trust.

Big asset managers like BlackRock, Fidelity, Grayscale, Invesco, VanEck, and Valkyrie are currently competing to launch spot Bitcoin ETFs. Although the applications are currently delayed, analysts believe that a collective approval will happen in early January.

In another interview with Kailey Leinz from Bloomberg on December 14, Gensler did not address questions about the number of applications for spot Bitcoin products. Instead, he mentioned that the agency's priorities are focused on recent changes in the U.S. Treasury market.

Responding to this interview, U.S. Congressman Bryan Steil commented, "Chairman Gary Gensler continues to be confusing on crypto both in committee hearings and when speaking to the press. He does not want to explain why his agency has taken an aggressive approach to crypto." Bloomberg ETF analyst James Seyffart summarized the situation by saying, "Gensler rarely gives straightforward answers! He's a master at hedging his words."

Chair @GaryGensler obfuscates on crypto with the press like he does at committee hearings. He does not want to explain his agency’s aggressive regulatory approach which is pushing crypto offshore. https://t.co/YdQFN42jmK

— Bryan Steil (@RepBryanSteil) December 13, 2023