For the first time since the fake spot Bitcoin clearance news rocked the market, SEC Chairman Gary Gensler admitted that the SEC is reviewing numerous exchange product files linked to BTC in an interview with Bloomberg TV on Wednesday. The SEC had previously stated that it would issue official announcements regarding its operations.
Gensler makes a calculated claim that bitcoin is “a security.”
According to Gensler, the Commission is considering eight to 10 Bitcoin-related ETF submissions “to be in a security.” The careful statement once more makes it clear that the SEC is unambiguous about Bitcoin’s classification as a non-security.
The SEC’s cautious attitude is reiterated in Gensler’s statements as well. “We don’t operate on a timer. The main focus is on the staff’s work and getting information to our five-member panel; occasionally, we even negotiate and reach compromises amongst ourselves, he stated.
Gensler’s claim that the SEC typically needs “between 12 and 24 months between a proposal and adoption” also provides the timing for the approval process. For those eagerly awaiting the launch of Bitcoin ETFs, the SEC chief stressed that it can sometimes take 15 to 19 months.
These exchange-traded products must register with the SEC and submit a filing that is somewhat akin to going public, such as an IPO. Therefore, it’s basically the responsibility of our Division of Corporation Finance to provide feedback, or, of course, our Division of Trading and Markets looks at the exchange filings,” Gensler continued.
Gensler didn’t specifically address the likelihood of the upcoming Bitcoin ETF applications receiving approval. I won’t pass judgment on the staff members working on those numerous submissions, he said.
Grayscale’s case could set precedent for other ETF approvals.
According to a recent Bloomberg story, Friday is a crucial day in the ongoing process of getting Bitcoin exchange-traded funds (ETFs) approved.
The DC court could issue a directive for Grayscale Investments LLC’s attempt to convert its Bitcoin trust (GBTC) into an ETF as soon as tomorrow. This outcome comes after the SEC decided not to appeal the earlier judgment by the deadline in October.
According to Bloomberg analysts, the outcome of Grayscale’s legal dispute with the SEC may shed light on the ETF approval procedure. Grayscale recently stated that it is prepared to introduce the ETF while waiting for the SEC’s approval.