U.S. Securities and Exchange Commission Chairman Gary Gensler concealed his impatience while responding to reporters’ questions about cryptocurrencies, including his agency’s handling of applications to launch an Ethereum ETF. In an interview with journalist Annmarie Hordern at a Bloomberg investment event in New York on Tuesday, Gensler accused his interviewer of only asking several questions related to cryptocurrency policy. Pursue “clicks”.
The cryptocurrency ETF issue has been a contentious issue during Gensler’s tenure at the SEC, most notably last year when a federal appeals court rejected the agency’s decision to deny a Bitcoin ETF application. The court’s ruling led the SEC to approve these Bitcoin applications in January, and despite Gensler’s initial signal that the Ethereum applications would be rejected, the agency recently said it would approve them.
The agency’s apparent change of heart has prompted continued speculation about how long the process will take. Despite the complaints, Gensler – a well-known opponent of cryptocurrencies – provided some details.
“I don’t know the exact timing, but it’s going well.” He detailed that his team was waiting for “proper disclosures” from asset managers.
Gensler’s comments follow SEC filings this spring suggesting the agency may have been taking the position that Ethereum is a security for more than a year.
Gensler also clarified that an ETF trading Ethereum futures has been approved. Last October, the SEC approved futures ETF applications from Valkyrie Investments, VanEck Funds, Proshares, Bitwise Asset Management and five other companies. The pending spot ETF application will give investors direct exposure to the asset through a regulated exchange.
Gensler was once viewed as a supporter of cryptocurrencies by many, who viewed his teaching a course on cryptocurrencies at MIT as an endorsement, but he has been harshly critical of the industry over the past few years. According to Bloomberg, regulators took 46 enforcement actions against cryptocurrency-related companies last year alone.
Gensler compared the 11 Bitcoin ETFs approved by the SEC this year to what he calls a “pattern of noncompliance” – exchanges that knowingly trade non-compliant securities – that are currently trading on regulated markets. “This is a real protection for investors and others who want to access capital markets,” Gensler said. It’s about trust in these markets.
Gensler declined to answer reports that his stance on cryptocurrency could cost his appointee, Joe Biden, the election. “My first priority is the American public,” Gensler said. “That’s the client, so that’s who we represent.”
