The cryptocurrency market is waiting with bated breath for the spot Bitcoin ETF to receive approval from the SEC. According to the companies that applied for issuance and many experts, Bitcoin ETF is now a matter of time. However, SEC chairman Gary Gensler maintains his perspective on the crypto world. In this regard, warnings are coming from Gensler repeatedly.
SEC Chairman continues to warn cryptocurrency investors!
cryptokoin.comAs you follow from , the cryptocurrency world is getting ready to move into a new phase. Companies applying for Bitcoin ETF made their final updates amid the SEC’s review. Valkyrie predicts the SEC will approve it on Wednesday. After that, he predicts that the first Bitcoin ETF will begin trading on Thursday. Amid these developments, SEC Chairman Gary Gensler repeatedly warns crypto investors. After his warning yesterday, Gensler shared a similar warning message today:
If you are considering an investment involving crypto assets, proceed with caution. Cryptocurrency asset securities may be marketed as new opportunities. However, there are serious risks to these.
Professor Cochran criticized Gensler harshly!
However, there are also many criticisms of Gensler’s warning. Among them, Professor Adam Cochran, who is also known on social media, gave a remarkable answer to Gensler. Cochran disputes the definition of “Cryptocurrency asset securities” used by Gensler. The professor notes that no US court has used this definition. It also highlights that the SEC oversees “securities” as defined by the Securities Act of 1933 and “investment contracts,” which can be securitized sales of non-securities. Based on this point, Cochran criticizes Gensler as follows:
Gensler, who is not a lawyer, chose to coin his own term and try to expand its reach. Other than bullying startups into accepting deals, no U.S. court has ever sided with the SEC on these issues or recognized the existence of the concept of “cryptoasset securities.” Instead, the SEC only won cases that involved fraud or the sale of a classic “investment contract” that could apply to any asset.
Applicants updated for Bitcoin ETF approval
In a major move in the world of cryptocurrency and finance, a consortium of major players including BlackRock, VanEck, Invesco, Galaxy, ARK 21Shares and Grayscale are hotly competing for Bitcoin ETFs in the United States. These entities filed revised documents with the SEC on Tuesday. Thus, it signaled a strong push for approval. The SEC has responded to these prospective issuers’ filings with comments within the last 24 hours. This development led to expectations and speculations in the financial community.
The latest filings reveal changes that primarily address important issues such as mitigating shareholder risks in potential bankruptcy scenarios and preventing conflicts of interest among authorized participants of the ETF. In particular, Invesco and Galaxy have revised their fee structures. Thus, they chose to reduce the previously announced fee from 0.59% to 0.39%.
There is only one day left until the critical deadline of January 10, 2024. Now the SEC is under great pressure. That’s why cryptocurrency experts expect him to make a decisive move. There is a widespread expectation among industry insiders that the regulator may opt for blanket approval of these ETF applications to maintain fairness and timeliness.
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