U.S. Securities and Exchange Commission Chairman Gary Gensler feigned impatience as he answered reporters’ questions about crypto, including his agency’s handling of applications to launch Ethereum ETFs. Speaking to journalist Annmarie Hordern at the Bloomberg Invest event in New York on Tuesday, Gensler accused his interviewer of seeking “clicks” after she asked him several questions about crypto policy.
The topic of cryptocurrency ETFs has been a contentious one during Gensler’s tenure at the SEC, particularly when a federal appeals court last year threw out the agency’s decision to reject applications for a Bitcoin ETF. The court ruling prompted the SEC to approve those Bitcoin applications in January, and despite initial signals from Gensler that the Ethereum applications would be rejected, the agency recently indicated it would grant them.
The agency’s apparent change of heart has led to ongoing speculation about how long the process will take. Despite his grumbling, Gensler – a known crypto opponent – did reveal some details.
“I don’t know the timeline, but it’s going smoothly.” He said his team is waiting for asset managers to make “proper disclosures.”
Gensler’s comments came after the SEC Submissions This spring suggested that the agency may have held the view that Ethereum was a security for over a year.
Gensler also clarified that an ETF to trade Ethereum futures has already been approved. Last October, the SEC approved futures ETF applications for Valkyrie Investments, VanEck Funds, Proshares, Bitwise Asset Management and five others. The pending spot ETF applications would give investors direct access to the asset through regulated exchanges.
Once announced Gensler is considered a crypto advocate, having recommended a course on the subject during his time as a lecturer at MIT. In recent years, he has come down hard on the industry. Last year alone, the regulator initiated 46 enforcement actions against crypto companies, according to a Bloomberg report. report.
Gensler contrasted the 11 Bitcoin ETFs that the SEC approved this year and that currently trade on regulated markets with what he called the “non-compliant model,” or exchanges that knowingly trade non-compliant securities as well. “It’s about real protection for investors and other people who want to have access to the capital markets,” Gensler said. It’s about trust in those markets.”
Gensler declined to answer a question about reports that his stance on cryptocurrencies could cost Joe Biden, who appointed him, the election. “My number one priority is the American public,” Gensler said. “That’s the customer, and that’s why we represent them.”