SEC Chairman Gary Gensler said he looks forward to the review of Bitcoin futures ETF filings.
The president of the United States Securities and Exchange Commission, Gary Gensler, spoke about the regulation of cryptocurrencies and exchange-traded funds (ETFs) of Bitcoin in the conference Future of Asset Management North America of the Financial times this week.
In prepared remarks, he spoke about “Investment vehicles that provide exposure to crypto assets”, and noted that “Earlier this year, several open mutual funds were launched that invested in bitcoin futures traded on the Chicago Mercantile Exchange (CME).”
Gensler added: “Later, we began to see presentations under the Investment Company Law [’40 Act] regarding exchange-traded funds (ETFs) seeking to invest in CME-traded Bitcoin futures ”, and detailed:
When combined with the other federal securities laws, the Law of 40 provides significant investor protections for mutual funds and ETFs. I hope the staff will review those presentations.
Thus, Gensler explained that some laws provide “Significant protections for investors” for ETFs, including those looking to invest in Bitcoin futures. So wait “with interest” see the SEC’s review of such filings.
In August, Gensler similarly said that he looked forward to staff review of ETF filings, “Particularly if they are limited to these CME-traded bitcoin futures.”
He also emphasized in the outlined conference the need to protect investors. “This crypto space now is certainly of a size that without those investor protections from banking, insurance, securities laws, and market oversight, I think someone will get hurt. Many people are likely to get hurt “Gensler said.
About crypto companies
The SEC chairman has been urging crypto companies to discuss whether they need to register with the SEC. Without naming specific platforms, he said, some companies have “Said things publicly about some of those conversations.” Recently, Coinbase He spoke on Twitter specifically about his crypto loan product that the SEC threatened to sue if it launched, so presumably Gensler is referring to this exchange. The executive director of Coinbase, Brian Armstrong, called the behavior of the securities watchdog “incomplete.” Subsequently, the Nasdaq-listed company abandoned its plan to launch the product.
Gensler said at the conference:
There will be times when people come in and say, “Sign up.” Isn’t everyone going to come in and say, “Can you tell us we’re not a security agent?”
It is worth remembering that Gensler has been emphatic on several occasions about the need to regulate the market.
As we have said, no ETF has yet been approved in the United States, while in its northern neighbor, Canada, there are already several approved.
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