Several incidents happened lately, putting doubt on the intentions of the US SEC
Wall Street Journal, Editorial Board wrote on Gary Gensler and SEC’s recent actions. On the 6th July edition of WSJ Opinion, it took on the SEC Chair and the intention of the commission. It noted that, in order to fulfill their desire to bring regulations on crypto markets, they are harsh. The actions of the SEC might sabotage the crypto market and investors.
WSJ noted that, SEC Chair is looking for crypto regulations and in process choking the investors. To prove their point, they took out the instance of the regulatory authority consistently rejecting spot bitcoin ETFs. This shows that the agency does not want spot bitcoin exchange traded funds in the market.
While there are some crypto firms that look on to launch ETPs that would track prices of bitcoin similar to stock indexes. Crypto firms intended to take a different approach that would let them serve investors in an alternate way. Even by using this way, investors could buy and store bitcoin directly.
According to an American newspaper, ETPs easily evade security related risks that attract the attention of more investors. Still, the SEC rejected every other spot bitcoin ETP, including recent rejections of Grayscale and Bitwise sponsored exchange traded products.
Further the WSJ Opinion included the statement of SEC Commissioner Hester Pierce on the same. Peirce said that the matter of the SEC opposing giving any spot ETP any chance, is getting popular. She further said that she receives this question most frequently asking when the agency could give an approval to a bitcoin ETP.
Putting Gery Gansler’s stance, WSJ outlined that he claims his concerns on bitcoin trading. The SEC Chair thinks that it is fragile and can easily be affected by market manipulations, ending up harming spot bitcoin ETP investors. Still, given the mammoth size of bitcoin market with over $390 billion valuation, its biggest and full fledged cryptocurrency of all.
Source: https://www.thecoinrepublic.com/2022/07/07/is-gary-gensler-playing-rough-seeking-crypto-regulations/