SEC approves listing of Bitcoin spot ETF by 5-3 vote, committee chair reveals background and views

Approved 5-3

On the 11th, the U.S. Securities and Exchange Commission (SEC) announced approval for the listing of 11 Bitcoin spot ETFs (exchange traded funds). Of the five voting commissioners, including the committee chair, two were against the bill, but the bill was approved by a majority vote. In this regard, four of the members who participated in the vote made their views public.

Source: SEC

Gary Gensler, chairman of the anti-cryptocurrency committee, voted in favor and commented that the Grayscale decision forced a change in policy. He confirmed that the reason for the accelerated approval of multiple ETFs is to create a level playing field for issuers to promote fairness and competition.

He also emphasized that this does not imply approval for the listing of other crypto assets (virtual currencies). He cautioned that Bitcoin is a largely speculative and unstable asset, and that it can also be used for illegal activities.

While we remain neutral, we believe that while the underlying assets of metal ETPs (Exchange Traded Products) have consumer and industrial uses, Bitcoin is primarily a speculative and volatile asset. It is also used for ransomware, money laundering, sanctions evasion, terrorist financing, and other fraudulent activities.

According to the statement, the SEC has rejected more than 20 proposed listing applications for Bitcoin spot ETFs from 2018 to March 2023. However, in August 2023, the D.C. Circuit Court of Appeals ruled that the SEC did not provide sufficient explanation when rejecting Grayscale’s proposed ETF application, and remanded it to the Commission.

connection:All 11 Bitcoin ETFs listed, SEC approved for first spot ETF in US history

To restore trust in the SEC

Commissioner Hester Peirce, who voted in favor and is known as “Crypto Mama” for her positive stance on virtual currencies, said that without the court’s intervention (the Grayscale trial), , suggested further delays may have occurred. While the SEC’s refusal has limited the means by which retail investors can invest in Bitcoin in the securities markets, they argue that the approval of physical ETFs provides a safeguard against fraud and manipulation.

Peirce also lamented years of delays in approving Bitcoin spot ETFs, noting that this uneven treatment has alienated innovation and caused a lot of harm. He said the commission’s credibility has been undermined, wasting staff resources, disrupting the SEC’s role, focusing unnecessary attention, delaying the launch of new products, and deteriorating relationships with industry.

One of the two no votes, Caroline A. Crenshaw, objected to the decision, arguing that it could compromise investor protections. They continue to oppose the proposed rule changes on the grounds that they are not reasonably designed to prevent fraud and manipulation and do not protect investors or the public interest.

Jaime Lizarraga, who voted against the bill, did not say why. However, the last person to vote in favor, Mark T. Ueda, agreed with the approval but raised some important concerns. He specifically points to the lack of a “significant market” test and expresses concern that the Commission hastened to approve applications with the aim of preventing first-mover advantage among spot Bitcoin ETFs.

connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks

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