At the Texas Blockchain Summit in Austin, Perianne Boring, the founder and CEO of the Chamber of Digital Commerce, didn’t mince words regarding the failure to approve a Bitcoin (BTC) exchange-traded fund (ETF) in the U.S. She pointed the finger at Securities and Exchange Commission (SEC) chair Gary Gensler, suggesting that politics, not economics, is the real gatekeeper when it comes to cryptocurrency legislation.
The Impact of FTX on Regulatory Approaches
Boring believes that the dramatic collapse of crypto exchange FTX has emboldened the SEC’s regulatory-by-enforcement approach. This, she argues, is likely to lead to more stringent oversight from Republican lawmakers who will be flexing their muscle with majority control in the House next Congress. But hold onto your wallets; she predicts that getting any significant crypto-related legislation through the divided government will be a Herculean task.
Increased Oversight Efforts
According to Boring, while there will be more oversight in the House, crypto might not top the priority list. She envisions a series of oversight hearings, complete with subpoena power and oath administration, all aimed at scrutinizing the SEC’s actions. It sounds like a riveting courtroom drama, but with more spreadsheets and fewer plot twists.
Legislative Hurdles Ahead
Boring is concerned that Congress’s apparent lack of urgency could significantly stall the much-anticipated Bitcoin ETF. Consider this: the industry has been pushing to introduce a spot Bitcoin ETF since 2013 but still hasn’t managed to get one off the ground. In the meantime, we have futures ETFs instead. The question remains, how does this make any sense? Boring believes it’s all about political power, with Gensler at the heart of the action.
Understanding the Political Landscape
Boring emphasizes that Gensler’s focus has been squarely on regulating crypto exchanges rather than moving forward with approvals for any spot crypto investment products. Since taking the reins, Gensler has delayed or outright rejected numerous applications for spot crypto ETFs. Notably, Grayscale filed a lawsuit against the SEC after its latest rejection—talk about a dramatic twist!
The Future of Bitcoin ETFs
As the cryptocurrency industry rallies for ETF approvals, the question lingers: when, if ever, will we see a Bitcoin ETF in the U.S.? With ongoing political maneuvering and legislative roadblocks, the timeline remains murky. One thing is clear; watch this space, because the saga of the Bitcoin ETF is far from over.
