Bitcoin Exchange Traded Fund The issue of approval of (ETF) is one of the most curious topics in the crypto arena lately. In an interview, SEC Chairman Gary Gensler touched on the difficulties in the crypto industry and also gave information about the relevant process.
SEC Chairman Reviewed Spot Bitcoin ETF Applications
In a recent interview with CNBC, Gary Gensler explained that the commission is currently reviewing eight to a dozen filings for the Spot Bitcoin ETF.
In addition, he stated that he chaired a commission and avoided being biased. However, he emphasized the importance of recent court decisions in the District of Columbia. These decisions evidenced the reconsideration of previously rejected applications.
The SEC chairman spoke specifically about the market’s expectation. market participants crypto- He warned them to be aware of the increasing disharmony in the field. Additionally, it cited violations of securities laws designed to provide important disclosures to investors.
The SEC Chairman spoke about the commission’s concerns about the prevalence of fraud and bad actors in the crypto space. He highlighted the lack of compliance with anti-money laundering regulations. However, it highlighted the fact that there is a lack of basic knowledge about many crypto projects. Gary even criticized brokers on digital asset exchanges for engaging in practices that are not allowed in traditional financial systems.
Gensler Calls for Caution Due to BTC ETF Expectation
Challenging the idea that high-profile convictions have eliminated fraud from the crypto space, Gensler took the opposite stance. Gensler cited repeated cases of bankruptcy and fraud when describing the crypto industry as a “wild west” facing challenges on a global scale.
Speaking about the legal challenges, Gensler showed confidence in the commission’s work so far. It acknowledged the right of industry trade groups to challenge the rules in court.
But he continued to defend the SEC’s commitment to transparency. He noted that transparency benefits capital markets as it reduces the cost of capital formation and increases returns for investors. Gensler also specifically mentioned the transparency rules. He expressed concern about the importance of creating a fair and efficient market.
Meanwhile. First Trust has filed for an Exchange-Traded Product (ETP) Bitcoin Buffer ETF. It seeks approval from the US SEC. According to reports, the ETF aims to protect investors by protecting against the first 30% loss of the underlying ETP.