US SEC Chief Gary Gensler could potentially reject all spot Bitcoin exchange-traded fund (ETF) applications in a surprising move, according to Bloomberg ETF analysts. In a tweet, ETF commentator Dave Nadig suggested that Gensler may be allowing the applications to accumulate just to deny them all at once in a “semi-comedic rug-pull.” While the analysts admitted that this scenario is unlikely, they acknowledged that a last-minute denial is still possible. They also noted that such a move would likely result in a wave of lawsuits.
This speculation comes as Gensler’s stance on spot Bitcoin ETFs has come under scrutiny. A video from 2019 has resurfaced, showing Gensler describing the SEC’s position on spot ETF products as “inconsistent” at the time. The SEC has a history of denying spot Bitcoin ETF applications, dating back to 2017. Gensler has continued this trend since becoming the head of the SEC in 2021, delaying and pushing back recent spot Bitcoin ETF applications due to concerns about investor protections.
In June 2022, the SEC was sued by crypto asset manager Grayscale for rejecting its bid to convert its existing Bitcoin trust into a spot ETF. The court ruled that the SEC’s decision was “arbitrary and capricious.” However, the SEC chose not to appeal the ruling. Currently, the SEC has only approved ETF applications for Bitcoin and Ether futures products, citing the need for safeguards against market manipulation in spot products.
While the possibility of Gensler rejecting all spot Bitcoin ETF applications in one go may seem unlikely, it remains a topic of discussion among industry experts. The outcome of this speculation could have significant implications for the future of Bitcoin ETFs and the broader cryptocurrency market.
– Bloomberg ETF analysts: https://cointelegraph.com/news/bitcoin-spot-etf-deny-rug-pull-gary-gensler-sec-bloomberg-analysts
– Gensler’s video on SEC’s position: https://cointelegraph.com/news/bitcoin-spot-etf-deny-rug-pull-gary-gensler-sec-bloomberg-analysts
– SEC’s history of denying spot Bitcoin ETF applications: https://cointelegraph.com/news/bitcoin-spot-etf-deny-rug-pull-gary-gensler-sec-bloomberg-analysts
– Grayscale’s lawsuit against the SEC: https://cointelegraph.com/news/bitcoin-spot-etf-deny-rug-pull-gary-gensler-sec-bloomberg-analysts
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