Gary Gensler was skeptical of cryptocurrencies, although he did not express any opinions on ETFs. Gensler’s views on a Bloomberg show suggest that he opposes any approval of Bitcoin ETFs. Brian Armstrong invited crypto users to “reach out” to legislators to “pressure” them to vote on new cryptocurrency bills.
US Securities and Exchange Commission (SEC) Chairman Gary Gensler has reiterated his skepticism about Bitcoin Exchange-Traded Funds (ETFs). Although he avoided commenting on the requests, he said he was concerned about “fraud” and “manipulation” of the cryptocurrency markets.
In an interview with the SEC chairman for Bloomberg TV, he declined to comment on the Bitcoin ETFs that are under review. However, he reiterated that he is concerned about the ease of fraud and manipulation of the cryptocurrency market, which could be interpreted as a clear opposition to any approval of Bitcoin spot ETFs.
SEC Chairman Maintains Skepticism about Cryptocurrencies
Gensler’s stance is known for his skepticism and animosity towards cryptocurrencies. He even recalled that members of the SEC analyze Bitcoin ETF cases, BlackRock being the best known. Gensler expressed the following on Bloomberg TV:
“There is a lot of non-compliance in this field. The platforms themselves, where various crypto tokens are traded, although some of them are subject to securities laws, currently do not necessarily comply with those proven protections against fraud and manipulation.”
On July 16, the SEC officially acknowledged receiving applications for Bitcoin exchange-traded funds (ETFs) from traditional financial institutions, including BlackRock and Fidelity. Meanwhile, Larry Fink, CEO of BlackRock, said the asset manager needs to democratize access to investments while comparing Bitcoin ETFs to the advent of gold ETFs.
“[Cryptocurrency] has a differentiating value against other asset classes, but more importantly, because it is so international, it is going to transcend any currency.”
Separately, Coinbase CEO Brian Armstrong invited cryptocurrency users to “reach out” to representatives and “pressure” them to vote in favor of new cryptocurrency bills. He even suggested holders go to ActNow and lobby US lawmakers:
“Important step you can take to protect the value of your crypto in America. We need your help to make sure the legislative process keeps moving forward.”
Coinbase CEO Calls to “Push” Lawmakers on Regulation
Days ago, Armstrong admitted that he had a scheduled closed-door meeting with Democratic lawmakers, as well as with members of the House of Representatives. The manager has already met with representatives of both parties, who are in fact discussing a regulation of cryptocurrencies.
On July 27, Armstrong tweeted the following:
“Today, two House committees started voting to take an important step on legislation that will create regulatory clarity for crypto. They will continue tomorrow. The bill will evolve during the legislative process, but a vote today for the Financial Innovation and Technology for the 21 Century Act is a vote to protect your crypto, American innovation, and national security.”
The disclosed minutes of issues included aspects such as taxes, national security, privacy, and climate. The moment is not a minor aspect. The talk occurred at a time when the company represented by Armstrong is under legal attack from the Securities and Exchange Commission.
By Audy Castaneda
