SEC chairman says crypto is highly speculative


Gary Gensler hinted that he will not support Bitcoin spot ETF applications, submitted by the American funds managers in the last few months. 

Gary Gensler is Chairman of the United States Securities Exchange Commission (SEC). Before joining the SEC agency, Gensler was known as a Bitcoin & Blockchain-friendly person but unfortunately, he never supported this innovative sector as head of a financial regulator body. Under the leadership of Gensler, the US SEC tried to forcibly regulate the crypto sector under the traditional securities laws, which were developed several years before the origin of Bitcoin. 

Recently in an interview with Bloomberg, Gary Gensler slammed the Crypto market and also warned people to remain away from this highly volatile & speculative market.

In the interview, Gensler said that the Crypto market is full of fraught & scams. Furthermore, he also talked about Bitcoin spot ETF applications.

Gensler said that he can’t comment directly on the Bitcoin spot ETF applications because submissions come to a 5 member commission. 

“I can’t comment but… crypto is highly speculative, no securities laws protection, no fair and accurate disclosure, platforms get rid of what the NYSE can’t, full of scams and scammers,” the SEC boss added.

In this way, Gensler indirectly tried to say that he will not support Bitcoin spot ETF applications and also hinted that approval of any Bitcoin spot ETF application is not in his hand. 

SEC vs Crypto

Under the leadership of Gensler, the SEC agency sued huge numbers of crypto companies. Recently this regulatory body lost its case against Ripple (XRP), a San Francisco headquartered blockchain firm.

Just a couple of days ago, the US SEC sued Quantstamp over conducting an illegal initial coin offering in 2017. 

Quantstamp is a blockchain security firm and its ICO project was a violation of the Federal Securities Act because its QSP token was unregistered securities, under the purview of the SEC agency.

Quantstamp blindly admitted its mistake and decided to return the funds to the QSP token buyers and also pay a fine against SEC’s charges.

Read also: Ripple (XRP) establishes a partnership with a Korean firm