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The United States Securities and Exchange Commission (SEC) has once again delayed its ruling regarding spot Bitcoin ETFs. This latest postponement affects the applications submitted by investment management giant Blackrock. Additionally, the crypto initiatives of Invesco, Valkyrie, and Bitwise have also been temporarily halted.
Many of these companies submitted their applications for a spot Bitcoin ETF in June 2023. The SEC’s initial postponement occurred in late August 2023. In their latest statement, the SEC indicated, “The Commission is instituting proceedings… to determine whether the proposed rule change should be approved or disapproved.” The SEC clarified that this action does not suggest any preordained outcomes.
Notably, this announcement followed a rigorous questioning of Gary Gensler, the SEC Chairman, during a Congressional hearing. At the session on Wednesday (27 September), Gensler reiterated his cautious stance regarding the cryptocurrency sector. The SEC leader also expressed concerns about crypto firms, particularly regarding the management of client funds. He pointed out that the mixing of funds is a risky practice that could lead to unfavorable results.
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These comments are especially relevant in light of the upcoming court appearance of Sam Bankman-Fried, the former CEO of the now-defunct FTX crypto exchange. Following disclosures in November 2022 about FTT, its exchange token, making up a significant portion of its balance sheet, the exchange filed for bankruptcy. Further revelations regarding the commingling of funds between Alameda and FTX intensified the controversies.
Moreover, Gensler confirmed that Bitcoin [BTC] is not categorized as a security. However, he did not classify it as a commodity either. He also addressed the SEC’s noncompliance with the court’s order concerning its Grayscale decision.
Grayscale had sought to convert its GBTC into a spot Bitcoin ETF, a request that was denied. This decision faced judicial review, with a Judge labeling the rejection as “arbitrary and capricious.”
In response to this, Gensler stated, “It’s still an active consideration of the commission,” and expressed the SEC’s deep respect for the judicial process.
The post SEC Delays Decision on Bitcoin ETFs Following Gensler’s Congressional Hearing appeared first on BitcoinWorld.
