The SEC Chair, Gary Gensler, has issued a public statement after approving some of the Spot Bitcoin ETP applications. He has clarified that all their actions have been within the legal framework and the interpretations that courts have made within those frameworks. Gary has further highlighted that while they have approved applications and are working on more applications simultaneously, they do not endorse or approve trading of any risky product.
Gensler has made a significant announcement regarding the eligibility of Spot Bitcoin ETP investors for protection.
This includes enabling them to access full disclosures by asset managers, listing and trading on registered NSEs only, and accessing a level playing field.
To start with disclosures, sponsors of Bitcoin ETPs are now compelled to provide disclosures about the products they are offering. The disclosure must be truthful and fair. It does not, however, include endorsement of the disclosed ETP arrangements, like custody arrangements.
Second, Spot Bitcoin ETPs shall be listed exclusively on legally registered national securities exchanges. The mechanism is designed to assist authorities in preventing market manipulation and deception.
Additionally, the Commission will exercise appropriate oversight to safeguard inventors from any adverse consequences resulting from the aforementioned illicit activities. Additionally, the SEC retains the authority to conduct investigations into securities markets in the event that any allegations of fraud or market manipulation are made.
The US SEC further reserves the right to investigate and supervise campaigns that are run on social media platforms.
Finally, the Commission Staff is working to ensure that inventors get access to a level playing field. They are, therefore, investing their efforts in reviewing and approving ten more Spot Bitcoin ETPs. It will also promote competition and fairness while ultimately benefiting inventors and the market at a macro level.
The US Securities and Exchange Commission has reiterated that Spot Bitcoin ETF is preliminarily a speculative product. It is highly volatile, and its usage often extends to money laundering, ransomware, terrorist financing, and sanction evasion.
Dennis Kelleher, the CEO, co-founder, and president of Better Markets, has pointed out that these are identical concerns. According to his statement, the endorsement of applications might facilitate a rise in illicit activities such as money laundering. Additionally, in an effort to safeguard investors’ funds, he suggested that all applications be rejected.
As of now, the approval of applications has brought some exciting times for the community. BTC is above the $46k mark, and ETH is exchanging hands at more than $2,600. The rise in the value of BTC is 1.15% in the last 24 hours, while the rise in ETH is 7.95% during the same time window. Applications are fresh from approval, and values could increase slightly in the next 24-48 hours.
