US SEC Chairman Gensler: “Bitcoin has become more centralized with the birth of physical ETFs.”

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Approval of virtual currency spot ETF

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler appeared on CNBC’s “Squawk Box” on the 12th and talked about crypto assets (virtual currency) spot ETFs (exchange traded funds).

Bitcoin (BTC) claims that centralization has progressed with the creation of spot ETFs. He said this was an ironic outcome for Satoshi Nakamoto, who first invented Bitcoin as a decentralized payment network. He also takes the view that Bitcoin itself is being produced by a limited number of entities.

This time, Mr. Gensler also talked about his message to investors regarding the approval of Bitcoin spot ETFs and other virtual currency spot ETFs.

Investors are cautioned that Bitcoin is a speculative asset and is subject to large price fluctuations. It also said it was being used for illegal activities such as money laundering and sanctions evasion.

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Regarding whether physical ETFs other than Bitcoin will be approved in the future, the company explained that this approval is limited to Bitcoin. He reiterated that he was simply approving a physical Bitcoin ETF, which is a commodity that does not fall under the category of securities.

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Comments immediately after approval

Mr. Gensler’s comments this time are similar to his comments immediately after approving the Bitcoin spot ETF. At that time, he also explained, “This approval does not imply that other virtual currency spot ETFs will also be approved.”

Meanwhile, Gensler voted in favor of approving a Bitcoin spot ETF. Until now, the SEC has disapproved all Bitcoin spot ETFs, but he also commented that the decision in the Grayscale case forced a change in policy.

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Speaking at Squawk Box, Gensler said there is no doubt that blockchain technology itself has the potential for innovation.

What is SEC?

Abbreviation for “Securities and Exchange Commission.” A U.S. government agency that supervises trading in securities such as stocks and bonds. The SEC’s mission is to “protect investors,” “maintain fair, orderly, and efficient markets,” and “promote capital formation.”

Virtual currency glossary