Summary
The US Securities and Exchange Commission (SEC) approved 11 spot bitcoin exchange-traded funds (ETFs), but there were significant divisions among the agency’s leadership. SEC Chair Gary Gensler voted in favor of approval but criticized the market underlying such products. Commissioners Hester Peirce and Mark Uyeda also approved the ETFs but criticized the process and certain features of the approved products. Commissioner Caroline Crenshaw strongly dissented from the approval decision, expressing concerns about fraud and manipulation in the bitcoin markets. The SEC’s approval of the ETFs has drawn criticism from various quarters, including Congress and the crypto industry.
Key Points
1. The SEC approved a slate of spot bitcoin ETFs, with votes of approval from Gensler, Peirce, and Uyeda, and dissents from Crenshaw and Lizárraga. A 3-2 majority was needed for approval.
2. Chair Gary Gensler voted in favor of approval but criticized the market underlying bitcoin ETFs, highlighting its speculative and volatile nature, as well as its potential use for illicit activities.
3. The statements from the SEC commissioners indicate significant divisions within the agency’s leadership team regarding the regulatory merits of spot bitcoin ETFs and oversight of the crypto space. Peirce criticized the agency’s long refusal to approve such proposals, while Uyeda expressed concerns about certain features of the approved products. Crenshaw strongly disagreed with the approval decision, emphasizing the risk of fraud and manipulation in spot bitcoin markets.