Gary Gensler complained about the way the US stock market regulator handles Bitcoin products in a video from 2019. He said their approach is not steady.
The video is going viral on social media. It shows Gensler talking about blockchain rules at a 2019 event, with SEC commissioner Hester Peirce.
In the future, there will be Bitcoin and Ethereum investments, but not yet for Bitcoin ETFs. This seems a bit strange to me. Gensler said
“Even though the laws are not exactly alike, they are pretty similar,” he said.
On Twitter, people who are interested in cryptocurrency noticed the difference in opinions between Gensler and spot Bitcoin ETFs.
”Gary Gensler says Gary Gensler is wrong,” market analyst Zack Voell posted. “We missed out on chill and normal Gensler,” another X user remarked.
Gary Gensler says Gary Gensler is wrong. pic.twitter.com/sHGzHcUyIC
— Zack Voell (@zackvoell) October 28, 2023
So far, the SEC has only said yes to Bitcoin and Ethereum futures ETFs.
Since 2017, the SEC has said no to Bitcoin ETF applications. Gensler is continuing this and is blocking recent applications because he thinks they don’t have enough safeguards against market manipulation.
Asset manager Grayscale sued Gensler’s SEC because they said no to turning their Bitcoin trust into a spot ETF.
The court said the SEC was wrong to reject the application. The SEC did not fight the decision in court.