The United States Securities and Exchange Commission (SEC) Chairman, Gary Gensler, has once again renewed his support for the approval of Bitcoin Exchange-traded Funds (ETFs) in the country.
Gensler told the Financial Times’ Future of Asset Management North America conference that its primary focus is Bitcoin ETFs that invest in futures and trade on the Chicago Mercantile Exchange under the 1940 Companies Act. investment.
He disclosed that the Investment Act of 1940 offers significant protection for investors of mutual funds and ETFs, adding that those venturing into Bitcoin ETFs also deserve similar protection, especially against fraud and market manipulation.
Bitcoin ETF approval around the corner
The SEC has rejected many Bitcoin ETF applications submitted during Jay Clayton’s administration, but Gensler’s recent comments gave applicants the idea that the regulator would approve such a product soon.
However, since Gensler disclosed that his administration would be open to seeing the first Bitcoin ETF go live in the U.S., none has yet been greenlighted by the commission.
While trying to keep the candidates’ hopes up, Gensler said he looked forward to “considering these [Bitcoin ETF] fills ”, which can probably be focused on applications that take into account the 1940 Investment Companies Act.
The Long Wait for a Bitcoin ETF
Following the launch of Bitcoin ETFs in Canada and Brazil, the crypto space has been eager to see a similar product go live in the United States.
Although the SEC has received several requests in the past, including from VanEck, the agency has been reluctant to approve one due to fears of potential market manipulation and fraud.
With Gensler’s appointment as SEC chair in April, many have hoped that there will be approval of a Bitcoin ETF in the United States.
Investor protection is essential
Although Gensler has always been open to Bitcoin ETFs, his primary concern is investor protection given the sad stories that have flooded the crypto market, which he says can be avoided through the Investment Company Act of 1940.
“This crypto space is now certainly of a size that without those investor protections of banking, insurance[and] securities laws [and] market oversight, I do think somebody is going to get hurt. A lot of people are likely to get hurt,” he said.
