FameEX Hot Topics | SEC Chair Gensler Extends Anniversary Greetings to Bitcoin's White Paper, Issues Caution to Crypto Firms

Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), commemorated the 15th anniversary of Bitcoin's white paper with a lighthearted message and a stern reminder about regulatory compliance for crypto companies. In a post shared on the X social media platform, Gensler extended his well-wishes to Satoshi Nakamoto's famous white paper, acknowledging its pivotal role in the inception of the crypto industry. He wrote, "Happy 15th anniversary to Satoshi’s famous white paper that started crypto."

In an attempt at humor, Gensler contemplated the possibility of Satoshi Nakamoto dressing up as themselves for Halloween, posing the question of whether anyone could recognize them in such a costume. However, his message concluded with a more serious tone, delivering a Halloween-themed message to crypto firms. Gensler cautioned, "Any crypto companies that are tricking investors should start treating them to compliance with the securities laws."

His message on social media generated significant engagement, with many users inquiring about the status of spot Bitcoin exchange-traded funds (ETFs). Despite approving several ETFs based on Bitcoin futures contracts, the SEC has yet to grant approval for a spot Bitcoin ETF. Gensler has consistently categorized all crypto tokens as securities, with the exception of Bitcoin.

Gensler provided insight into the SEC's current evaluation of spot Bitcoin ETF applications, revealing that the regulator is considering eight to ten such applications. Public records indicate that 12 spot Bitcoin ETF applications have been submitted to the SEC. Prominent applicants include Grayscale Investments, ARK Investment Management (Cathie Wood), BlackRock, Bitwise, WisdomTree, Fidelity, VanEck, and Invesco. Eight of these applications have prospective review dates scheduled for the first quarter of the following year, while three are set for review in the second quarter.

Market analysts, including those at JPMorgan, anticipate the SEC approving multiple spot Bitcoin ETFs simultaneously. Recent speculation about BlackRock, the world's largest asset manager, nearing the launch of its spot Bitcoin ETF has contributed to a surge in Bitcoin's price. Bernstein Research even suggested that a spot Bitcoin ETF appears likely to become a reality in January, describing it as a "done deal." Gensler's tweet highlights the ongoing debate surrounding cryptocurrency regulation, with varying opinions on whether it should be more permissive or subject to strict oversight. The SEC has maintained a cautious approach, with Gensler underscoring the importance of investor protection and adherence to securities laws.

Proponents of a spot Bitcoin ETF argue that it would offer a more direct and accessible investment route for retail investors, potentially mitigating the premium associated with products like Grayscale's Bitcoin Trust (GBTC). While the approval of a spot Bitcoin ETF would signify a significant milestone for the crypto industry, the timeline for SEC approval remains uncertain. Until a decision is reached, market participants will continue to monitor regulatory developments and their potential impact on the cryptocurrency market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.