The SEC chairman confirmed that he supports the launch of a narrow class of exchange-traded funds (ETFs) on bitcoin, which will invest in futures contracts, and not in the cryptocurrency itself.
According to a Business Insider publication, US Securities and Exchange Commission (SEC) Chairman Gary Gensler gave his views on cryptocurrency ETFs and cryptocurrency product regulation at the Financial Times conference.
Gensler reiterated his support for the idea of launching Bitcoin ETFs that invest in futures contracts traded on the Chicago Mercantile Exchange, registered under the Investment Company Act of 1940. According to Gensler, this law provides significant protection for investors. “I am looking forward to considering such applications,” he said.
After speaking at the SEC’s Aspen Security Forum in August, it became clear that he has little enthusiasm for Bitcoin ETFs. Gensler paid more attention to bitcoin futures contracts traded on stock exchanges. None of these ETFs have yet been approved by the regulator, but industry experts are awaiting a decision on such applications as early as October.
At the conference, Gensler also spoke out about cryptocurrency products offering interest income, according to the Financial Times publication. Cryptocurrency trading and lending platforms that promise investors profits are mistaken in believing they can avoid regulation from the US Securities and Exchange Commission, according to the agency’s chairman.
Gary Gensler said that investors in cryptocurrency products deserve the same protection against fraud and manipulation as bank depositors or buyers of insurance policies and mutual funds.
“The cryptocurrency industry has reached such a size that without proper investor protection and market surveillance, many will suffer,” he said.
Gensler’s comments follow Coinbase’s decision not to launch a high-yield savings product for USDC following a SEC warning. At the conference, the SEC chairman noted that some companies “publicly talked about the SEC’s position.”
“Sometimes people come to us and we say, ‘Register,’” Gensler said. “It shouldn’t be so that people come to us and say: ‘Could you tell us that our product is not a security?’”.
Gensler also added that cryptocurrency platforms that accept money from investors and offer a certain income should carefully study the laws on securities and discuss with the agency the need for registration. The SEC chairman said, “Many of them should register now – or should have done before.”
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