SEC Chair Gary Gensler Is Still Reviewing 'Multiple Filings' Around Bitcoin ETF — Another $1.4T Asset Giant Joins The Race

Securities and Exchange Commission (SEC) Chair Gary Gensler on Wednesday confirmed that the agency is still evaluating a court’s decision regarding Grayscale Investments’ pursuit of a spot Bitcoin BTC/USD exchange-traded fund (ETF).

What Happened: During a senate hearing on Tuesday, Senator Bill Hagerty asked Gensler about the specific requirements for approving a spot Bitcoin ETF filing. 

The SEC Chair responded by stating that the SEC is currently reviewing the Grayscale decision and “multiple filings around Bitcoin exchange-traded products.”

Gensler voiced concerns regarding the cryptocurrency sector’s integrity, suggesting the industry is currently fraught with “fraud, abuse, and misconduct.”

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Why It Matters: Gensler’s statement comes at a time when several firms, including BlackRock and Fidelity, have filed for spot Bitcoin ETFs. Asset manager Franklin Templeton is the latest Wall Street giant to enter the race for a spot Bitcoin ETF.

The U.S. Court of Appeals for the D.C. Circuit made a ruling in August, ordering the SEC to re-evaluate Grayscale’s application for a spot bitcoin ETF. Grayscale had filed a lawsuit against the SEC after its plan to convert its flagship GBTC fund was rejected. 

Last week, Grayscale sent a letter to the SEC requesting a meeting and urging the agency to approve its spot bitcoin ETF. 

It should be noted that the SEC still has the option to request an en banc hearing, which involves a rehearing with all three judges. After 45 days, the court will issue a final mandate outlining the next steps.

Image Courtesy: Flickr

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