Gary Gensler: Bitcoin ETFs Were “Most Sustainable Thing To Do”

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  • SEC chair Gary Gensler has said that approving Bitcoin ETFs was the most “sustainable thing to do” 
  • Gensler attributed the agency’s decision to the Grayscale defeat
  • He also took the chance to criticize the crypto space once again

The chair of the US Securities and Exchange Commission (SEC) has opined that approving multiple Bitcoin ETFs was the “most sustainable thing to do” following the victory secured by Grayscale previously but maintained his skepticism about Bitcoin itself. In a series of interviews conducted on Wednesday Gensler reiterated his stance that the approval of these investment vehicles did not signify a shift in the SEC’s perspective on the risks associated with Bitcoin, a scenario that doesn’t paint a particularly positive picture of the chances of an Ethereum ETF.

“Prudent to Grant Approval”

Gensler was interviewed by Bloomberg and CNBC, where he explained that the reason for the mass Bitcoin ETF approval was solely down to the court ruling in Grayscale v. SEC, where the agency was instructed to reconsider its stance on spot ETFs following a lack of satisfactory explanation for its previous denial.

The SEC chief told Bloomberg News that “In light of the court’s decision, it was deemed most prudent to grant approval,” but voiced concerns regarding the potential ties between Bitcoin and illicit activities, as well as the lack of oversight faced by many cryptocurrency exchanges, saying, “The cryptocurrency realm has been plagued by instances of fraud and manipulation, with numerous bankruptcies.

While speaking on CNBC’s Squawk Box, Gensler acknowledged that traditional currencies issued by governments are also utilized for illegal purposes, such as money laundering, but he highlighted the significant role played by central bank-issued currencies (CBDCs) in supporting established economies, contrasting it with Bitcoin and crypto, which he suggested primarily facilitate ransomware activities.

Gensler Still Dislikes Crypto

In his interview with Bloomberg, Gensler expanded on his skepticism towards cryptocurrency trading platforms, Bitcoin’s comparatively high volatility, and the limited practical applications of many cryptocurrencies:

While we endeavor to mitigate fraud and manipulation, the decentralized nature of the Bitcoin market poses challenges, with a significant portion of trading occurring on platforms not adhering to regulatory standards.

These concerns haven’t stopped billions of dollars of inflows into Bitcoin ETF providers, highlighting the huge demand for it.