Securities and Exchange Commission (SEC) Chairman Gary Gensler told Bloomberg that the regulator will not rush to approve applications for the launch of bitcoin-ETF crypto exchange-traded funds.
According to him, the Division of Corporate Finance, which reviews applications of all issuers, should make a final decision after assessing the risks of legalization of the instrument.
Gary Gensler has been advocating for tighter controls on the digital currency market since 2020.
The Securities and Exchange Commission in 2021 only approved the issuance of crypto ETFs focused on bitcoin futures.
However, the regulator is against the emergence of exchange-traded crypto funds that track the performance of the cryptocurrency’s spot price.
Gensler did not rule out that the review of applications could stretch for years. There is an appropriate procedure, which is what the supervisory authorities should focus on.
Galaxy Digital CEO Mike Novogratz urges investors to remain optimistic. In his opinion, spot bitcoin-ETFs may appear on the U.S. stock market before the beginning of 2024.