The recent approval of bitcoin ETFs by US Securities and Exchange Commission (SEC) Chairman Gary Gensler has sparked controversy as he simultaneously expressed criticism and unfounded claims against bitcoin and the crypto industry in general.
on a CNBC interviewGensler made statements that surprised industry participants.
bitcoin ETF approval fails to change Genler's stance on cryptocurrencies
Although he recognizes the approval Of ETFs, Gensler emphasized that the SEC does not endorse or approve bitcoin itself. The SEC chairman referred to bitcoin as a “speculative and volatile asset,” highlighting its alleged use for illicit activities and money laundering.
Gensler dismissed the idea that bitcoin could serve as a store of value or a widely accepted payment method, implying that its main utility lies in illicit transactions.
Interestingly, one of CNBC's interviewers, Joe Kernen, disputed Gensler's claims. Kernen noted that compared to the 20,000 units of dollars used for money laundering, only 33 units of bitcoin were associated with illicit activities.
Kernen also highlighted the strength of bitcoin, comparing it to gold and its long-term use as a monetary asset. He emphasized that the bitcoin blockchain has run smoothly for billions of transactions, underscoring its reliability.
Gensler, however, largely avoided Kernen's comments and continued his bitcoin criticism. The SEC Chairman expressed concern about the centralization that has occurred in the bitcoin market, despite the initial vision of decentralization of it.
Gensler argued that the approval of bitcoin ETFs has contributed to this centralization by aligning the cryptocurrency with traditional financial systems, differentiating itself from Satoshi Nakamoto's initial mission.
SEC Chairman Casts Doubt on Possibility of ethereum ETF
In response to Senator Elizabeth Warren's criticism of the The SEC's decision In approving bitcoin ETFs, Gensler defended the agency's actions, stating that he respects the law and believes that approving ETFs was the right way to go.
Regarding the possibility of a ethereum ETFGensler was skeptical. He labeled ethereum as a security, in contrast to bitcoin, which he considered a token that is not a security.
Overall, SEC Chairman Gensler's mixed messages approving bitcoin ETFs while also criticizing the cryptocurrency have sparked debate and confusion within the crypto community.
As the industry continues to evolve, the implications of these conflicting statements and the SEC's regulatory approach will be closely examined.
Currently, the price of bitcoin stands at $43,500, representing a decrease of almost 7% in the last 24 hours, coinciding with the start of ETF trading.
The long-term effects of these index funds on the price of the largest cryptocurrency are yet to be determined. It remains to be seen how the introduction of these ETFs will affect the value of bitcoin over time.
Featured image from Shutterstock, chart from TradingView.com
