FameEX Hot Topics | SEC Chair Gensler: We Act in Accordance with Our Powers and Judicial Interpretations

Gensler clarified that there are currently "eight and a dozen filings in front of this agency" related to exchange-traded products tied to Bitcoin. The SEC responds to these filings in accordance with its authorities and the interpretations provided by the courts. He referred to a recent court case, SEC v. Grayscale Investments, in which the crypto asset manager sought to convert its Bitcoin trust (GBTC) into a spot Bitcoin ETF. Initially, the SEC rejected the application, leading Grayscale to take the matter to court. The court ruled in favor of Grayscale, instructing the SEC to reconsider the application.

Gensler also highlighted the importance of the Treasury market, describing it as a top regulatory priority. He emphasized that the $26 trillion Treasury market is the linchpin of the entire U.S. capital system, playing a pivotal role in government funding, Federal Reserve policy, and the global dominance of the U.S. dollar. The SEC chief emphasized the Treasury market's significance, calling it "very consequential" and "very important."

In contrast, Gensler pointed out that crypto securities are significantly smaller in scale and do not play a role in government funding or monetary policy. He noted that many investors in the crypto market have suffered harm due to noncompliance issues, highlighting violations of not only securities laws but also regulations from the Commodity Futures Trading Commission (CFTC), Treasury Department, and the Financial Crimes Enforcement Network (FinCEN).

Gensler's remarks underscore the SEC's careful approach to spot Bitcoin ETFs and its ongoing efforts to regulate the crypto industry while focusing on larger financial markets like the Treasury market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.