Gensler Voices out Crypto Fraud Concerns: May Delay Bitcoin ETFs

Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC), recently voiced his worries about possible fraud in the cryptocurrency market. This came during a televised interview with Bloomberg. 

Investment giants like BlackRock have applied to create Bitcoin Exchange-Traded Funds (ETFs). However, Gensler's concerns may pose a challenge. The SEC, which Gensler heads, hasn't yet approved any such Bitcoin ETFs, mostly due to worries about manipulation and the protection of investors.

Gensler pointed out some problems with cryptocurrency trading platforms during the interview. These platforms combine multiple market functions, something which traditional financial exchanges don't do to avoid conflict of interest and protect investors. 

He also mentioned that although some crypto tokens fall under securities laws, the trading platforms might not be following the right measures to protect against fraud and manipulation. 

Gensler's comments suggest that the SEC is aware of these problems and is taking steps to solve them. They have already taken action against several crypto companies, like Binance and Coinbase, for breaking securities laws and engaging in fraudulent activities. It seems the SEC will keep taking a strong stance on these issues in the crypto market.

However, the recent increase in applications for Bitcoin ETFs, especially those backed by BlackRock and based on agreements with Coinbase, could face opposition from Gensler. Despite this, he didn't make a direct comment on this matter until the full five-member commission can review these applications.

In summary, Gensler's remarks suggest the SEC might continue to be cautious about approving such products, particularly due to ongoing concerns over fraud in the emerging crypto industry. His cautious attitude also reflects the broader skepticism among regulators and policymakers about the fast-growing crypto market.