SEC Chair Prioritizes Treasury Over Crypto in ETF Query

Estimated read time 2 min read

Gensler’s Priorities

Securities and Exchange Commission Chair Gary Gensler showed reluctance to delve into crypto matters post a Treasury market meeting. When queried about the status of spot Bitcoin ETF applications, Gensler redirected attention, emphasizing the paramount role of the $26 trillion Treasury market.

Treasury Market Significance

In a Bloomberg Television interview, Gensler underscored the Treasury market’s pivotal contribution to funding the government, executing monetary policy, and upholding global dollar dominance. He dismissed crypto’s comparatively smaller scale and highlighted challenges tied to non-compliance, causing harm to investors.

Spot Bitcoin ETFs Under SEC Review

The SEC currently assesses spot bitcoin ETF applications from major players like BlackRock and Fidelity. Gensler’s emphasis on the Treasury market reflects its systemic importance, downplaying the size and compliance issues in the crypto realm.

Bitcoin’s Market Presence

Bitcoin, constituting around $838 billion of the total crypto market capitalization nearing $1.7 trillion, witnessed a 4.1% surge to $42,802 on Wednesday. This surge intensifies speculation as the SEC continues its evaluations of spot bitcoin funds.

Gensler’s Cautious Stance

Gensler, opting not to prejudge the ongoing review, maintained silence on the progress of spot bitcoin funds last month. He reiterated the SEC’s commitment to a “time-tested” review process, involving ongoing dialogues with potential issuers to address technical intricacies.

Technical Meetings for SEC’s Scrutiny

In recent weeks, the SEC has engaged in meetings with potential issuers, focusing on technical details related to proposed redemption processes. This meticulous approach aligns with Gensler’s commitment to ensuring a comprehensive and informed review process for spot bitcoin ETF applications.