SEC Chair Gary Gensler Votes In Support Of 11 Spot Bitcoin ETFs Despite Feigned Criticism

Key Points:

• SEC Chair Gary Gensler is among three commissioners to approve the first-spot Bitcoin ETF; two commissioners disagreed.
• Vanguard experienced difficulties on the inaugural trading day, despite recent SEC approvals for multiple ETFs.
• Senator Warren criticized Gensler’s decision, advocating for stricter regulation in the cryptocurrency industry.

U.S. SEC Chair Gary Gensler, alongside commissioners Hester Peirce and Mark Uyeda, played pivotal roles in greenlighting the first-ever spot Bitcoin (BTC) exchange-traded fund (ETF), according to a commission votes notice on the SEC site. Notably, Commissioners Caroline Crenshaw and Jaime Lizárraga opposed the plans.

SEC Chair Gary Gensler Approves First Bitcoin ETF Amid Internal Debate

While Peirce is recognized as a cryptocurrency industry supporter, SEC Chair Gary Gensler has consistently expressed skepticism, citing concerns about customer protection and fraud within the market. Despite the SEC recently approving 11 similar funds, Vanguard customers encountered hurdles participating in the inaugural trading day for these funds.

Following the conclusion of the first day of Bitcoin ETF trading, Senator Elizabeth Warren, D-Mass., voiced her dissent, seizing the opportunity to reinforce her stance on regulating the crypto industry. Warren criticized SEC Chairman Gensler decision, aligning it with her ongoing efforts to tighten scrutiny on digital assets.

Gensler‘s initial comments after the Wednesday approvals underscored the SEC’s persistently cautious approach to Bitcoin. He pointed to the regulator’s legal setback in 2022 when the court ruled against rejecting Grayscale‘s proposal, leaving the SEC with little choice but to endorse Bitcoin ETFs.

The approval of the spot Bitcoin ETF marks a significant milestone, with Gensler’s role in the decision revealing internal divisions within the SEC regarding cryptocurrency regulations. As the crypto industry continues to evolve, these developments will likely shape the regulatory landscape in the coming months.