The U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, continued to criticize industry practices in a public statement, even as the SEC faces legal battles with cryptocurrency firms.
If the SEC continues to block Bitcoin ETFs in the US, it is likely that more and more asset managers will look to establish Bitcoin ETFs in other countries. This would make it easier for investors outside of the US to invest in Bitcoin.
It is important to note that the SEC has not yet made a final decision on whether or not to approve Bitcoin ETFs. However, Gensler has expressed some skepticism about Bitcoin ETFs in the past. He has said that he is concerned about the volatility of Bitcoin and the potential for fraud in the Bitcoin market.
If the SEC does not approve Bitcoin ETFs in the US, it would be a setback for the Bitcoin industry. However, it is likely that the Bitcoin industry would find ways to adapt. For example, asset managers could establish Bitcoin ETFs in other countries, or they could develop new investment products that would give investors exposure to Bitcoin, this would be damaging to the US Economy.
Gensler, has made a number of statements about Bitcoin, some of which could be interpreted as being anti-Bitcoin. For example, he has said that Bitcoin is a “speculative asset” that is “not suitable for most investors.” He has also said that Bitcoin is “used in a lot of illicit activity.”
Gensler refrained from revealing the SEC’s plans regarding spot bitcoin Exchange Traded Funds (ETFs) following a recent legal setback.
In his testimony before the House Financial Services Committee, Gensler maintained his critical stance on how digital asset companies handle customer funds, emphasizing the risks associated with commingling assets.
He also mentioned that the SEC has not yet decided on its course of action in response to a judge’s ruling that required the agency to reconsider its position on spot bitcoin ETFs.
Gensler stated, “It’s still an active consideration of the commission,” and added, “We have great respect for the courts.”
In August, a judge in the D.C. Circuit Court of Appeals instructed the SEC to reevaluate its stance on bitcoin ETF applications, deeming the agency’s rejection in the Grayscale Investments case “arbitrary and capricious.” Gensler’s testimony did not provide specifics on the SEC’s next steps or timeline for action.
The congressional hearing also covered topics beyond cryptocurrency, including concerns about a potential government shutdown and whether the SEC is overly focused on issues like climate change. The hearing highlighted partisan divisions, with Democrats offering support for Gensler, while Republicans criticized his actions.
There are a number of Democratic politicians who have expressed opposition to Bitcoin. Some of the most notable examples include:
- Senator Elizabeth Warren (D-MA)
- Senator Sherrod Brown (D-OH)
- Representative Maxine Waters (D-CA)
- Representative Rashida Tlaib (D-MI)
- Representative Stephen Lynch (D-MA)
There are a number of Republican politicians who have expressed opposition to Bitcoin. Some of the most notable examples include:
- Senator Ted Cruz (R-TX)
- Senator Josh Hawley (R-MO)
- Senator Pat Toomey (R-PA)
- Representative Patrick McHenry (R-NC)
- Representative Tom Emmer (R-MN)
These politicians have raised a variety of concerns about Bitcoin, including its environmental impact, its volatility, and its use in illicit activities. They have also argued that Bitcoin is not a safe investment for ordinary Americans.
It is important to note that not all Democrats are opposed to Bitcoin. Some Democrats, such as Senator Cynthia Lummis (R-WY), have expressed support for Bitcoin and other cryptocurrencies. However, the Democrats listed above are among the most prominent Democratic voices who have spoken out against Bitcoin.
In addition to the politicians listed above, there are also a number of Democratic-aligned think tanks and advocacy groups that have expressed opposition to Bitcoin. For example, the Center for American Progress and the Consumer Federation of America have both published reports criticizing Bitcoin.
Overall, it is clear that there is a significant amount of opposition to Bitcoin within the Democratic Party.
Shayne Heffernan
