US Securities Exchange Commission (SEC) Chair Gary Gensler made several references to cryptocurrencies during his address at the Securities Enforcement Forum.
In his latest speech, Gensler emphasized the necessity of enforcement, and other the approach has been consistent. This means that crypto regulations must be applied consistently, “regardless of the entity, the technology, or the business model”.
The SEC head also made a veiled reference to the SEC’s case with Ripple and XRP during a portion regarding high-impact cases. He called such cases important because they change behaviour in the rest of the market by sending a message. “Some market participants may call this ‘regulation by enforcement,” Gensler said. “I just call it ‘enforcement’.”
Congressmens’ letter to Gensler
Earlier this week, Gensler received a letter from a pair of US Congressmen, asking the SEC to consider approving a bitcoin spot exchange-traded fund (ETF). In the letter, Congressmen Tom Emmer and Darren Soto question why the financial regulator is comfortable approving a derivatives-based bitcoin ETF but not a bitcoin spot ETF.
The congressmen also spotted out that bitcoin spot ETFs offer investors more protection than ones based on derivatives. Furthermore, the approved ETFs could impose substantially higher fees on investors due to the premium on bitcoin futures and rolling the contracts each month.
The letter also contained lines addressing the SEC’s perceived concerns about approving either a bitcoin spot or futures ETF; referring to the potential for fraud and manipulation in bitcoin markets.
All of this because this concern would have to apply to both spot-based and futures-based ETFs, the Congressmen argue that approval of the futures ETFs just shows that the regulator’s issues have been pacified.