- A recent court decision was the driving force behind the Bitcoin Spot ETF approval, according to SEC's Gensler.
- The SEC has previously denied over 20 applications and the court’s decision is currently limited to Bitcoin.
- Gensler directs investors to remain cautious about risks associated with Bitcoin.
The Securities and Exchange Commission's (SEC) Chair Gary Gensler shed light on the body’s decision to approve Bitcoin Spot ETFs. Gensler explained that between 2018 and May 2023, the Commission denied nearly 20 applications for Bitcoin ETPs.
A US District of Columbia’s court decision, however, was the key factor that influenced his approval for Bitcoin Spot ETFs.
Also read: Elon Musk open to using Bitcoin on X, fueling hope among market participants
SEC Chair says courts interpretation of the law drove BTC Spot ETF approval
The SEC’s approval of the Bitcoin Spot ETF, on Wednesday, January 10, marks a watershed moment for crypto market participants. In a recent statement on the SEC website, Chair Gensler said that the Commission acts within the law and how the courts interpret the law.
The DC Circuit Court of Appeals put an end to the dispute between the US SEC and Grayscale in October of last year, and ordered the financial regulator to revisit its rejection of the asset manager's spot Bitcoin ETF application.
For Gensler this court ruling was a driving force for Spot Bitcoin ETF approval. Chair Gensler felt that the most sustainable path forward after the ruling was to approve the listing and trading of spot Bitcoin ETF shares.
Gensler reminded investors that the Commission is “merit neutral” and does not take a view on particular companies, investments, or the assets underlying an ETP. Therefore, the SEC does not endorse or support Bitcoin per se.
The Bitcoin ETF approval does not signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws. This is a key piece of information when considering the SEC’s decision on the Ethereum Spot ETF, lined up for May.
Chair Gensler asked investors to remain cautious about the myriad risks associated with Bitcoin, in his statement.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Cardano, XLM, FLOKI lead $3.1 trillion rally, Russia bans crypto mining, Bitcoin eyes $95K
Cardano (ADA) price action ADA’s ongoing rally has been attributed to rumors that the Trump administration could collaborate with the Cardano network to build a blockchain voting system.
Trump administration allegedly seeks to create new crypto position in White House
President-elect Donald Trump and his team are reportedly seeking to introduce a new White House position for crypto policy, Bloomberg reported on Wednesday.
Solana Price Forecast: Traders move 6.7B SOL as bulls target all-time highs
Solana price has succumbed to a 7% dip after rejecting the $250 resistance on Monday. Negative shifts in vital trading indicators suggest bears could delay the all-time high breakout target.
FLOKI to go live on Coinbase few days after the exchange listed PEPE and WIF
Floki Inu (FLOKI) is down 5% on Wednesday following crypto exchange Coinbase's announcement that the token will begin trading on its platform over the next 24 hours.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.