February 10 US Securities and Exchange Commission Chairman Gary Gensler appeared on CNBC to discuss the recent enforcement action against cryptocurrency trading platform Kraken.
In the interview, Gensler stressed the importance of full, fair and truthful disclosure of investment contracts and investment schemes being offered to the American public.
In this regard, ETF Store President Nate Geraci tweeted that the SEC is unlikely to approve a bitcoin spot exchange-traded fund (ETF) anytime soon.
In a tweet, Geraci noted that Gensler had stated that the SEC would not approve such a product until cryptocurrency exchanges were regulated.
In the interview, Gensler highlighted the “basic deal” in the United States, which requires companies offering investment contracts and investment schemes to provide complete, fair and truthful information to investors. He stated that “labels don’t matter” and that the underlying economics matter.
He also made it clear that it doesn’t matter if an investment is called a loan, profit, yield or APY as long as it complies with the basic full disclosure agreement.
Gensler’s comments have major implications for the future of Bitcoin spot ETFs. Even if the SEC loses the Grayscale lawsuit, Geraci said it is more likely that the SEC will force a delisting or shutdown of futures products rather than approve a spot Bitcoin ETF.
The formidable regulator greenlit the futures ETF back in October 2021, sparking a major rally.
This development disappointed investors and industry participants who were eagerly waiting for the approval of the Bitcoin Spot ETF.
The lack of regulation of cryptocurrency exchanges has been a major barrier to the approval of such a product, and Gensler’s comments suggest that this barrier is unlikely to be removed any time soon.
The SEC’s focus on regulation and full disclosure, coupled with the lack of regulation of cryptocurrency exchanges, is likely to delay the approval of such a product for the foreseeable future.
Credit : u.today
