The editorial board of The Wall Street Journal has thrown some serious shade at Gary Gensler’s seemingly indomitable stance against allowing a spot Bitcoin (BTC) exchange-traded fund (ETF). In a fiery opinion piece, they’ve hammered the Securities and Exchange Commission (SEC) for its contradictory approach to Bitcoin-related exchange-traded products (ETPs) versus traditional assets and commodities.
Gensler’s SEC: A Brick Wall for Bitcoin ETPs
Since taking office, Gensler’s SEC has hit the brakes on every proposed spot Bitcoin ETP. Just last week, applications from both Grayscale and Bitwise were met with rejection. Grayscale has reacted with all the grace of a bull in a China shop, launching a legal battle against the SEC to fight for what they see as their right to innovate.
Spot vs. Futures: A Confusing Regulatory Landscape
The editorial remarked on the bewildering nature of these consistent rejections, especially when juxtaposed with the SEC’s approval of several Bitcoin futures ETPs last year. If the success of futures wasn’t enough to spin the wheel of approval for spot ETFs, then what is Gensler looking for? Perhaps a crystal ball that reveals the future market behavior?
The Legendary Resilience of Gensler
SEC Commissioner Hester Peirce didn’t hold back either, dubbing Gensler’s firm resistance to spot crypto ETPs as practically “legendary.” She posed a question many are wondering: What will it take for the SEC to acknowledge the maturity of Bitcoin spot markets and allow these products into the wild?
A Two-Pronged Approach: The SEC’s Mediaeval Challenges
Gensler’s approach towards approving Bitcoin ETPs resembles a medieval torture device – uncomfortable, restrictive, and likely to scare off any brave souls looking to enter the crypto arena. He requires ETP sponsors to prove that significant Bitcoin trading occurs on regulated markets, a feat that’s nearly impossible since most trading is currently carried out on unregulated exchanges.
Higher Standards, No Clue
Moreover, Gensler has set a ridiculously high bar for spot Bitcoin ETPs without offering any guidance on how to actually clear it. This has left many scratching their heads, as the SEC is known to give vague directions like a bad GPS, leading to confusion and frustration for eager market participants.
The Echo Chamber of Dissent
Industry voices like Eric Balchunas from Bloomberg have echoed these sentiments, sharing on social media how Gensler is “holding innovation hostage” while trying to gain control of the crypto market. Perhaps Gensler is just an overprotective parent, worried about his ‘crypto children’ getting into trouble.
Conclusion
As Grayscale’s legal battle unfolds, one must wonder whether Gensler’s legendary resistance will remain steadfast, or whether regulatory tides will shift in the crypto realm. Until then, investors wait with bated breath, hoping for some clarity from the increasingly murky waters the SEC has created.
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