SEC Chairman Speech May Delay Bitcoin ETF Approval: Gensler’s Doubts

SEC Chairman Gary Gensler recently made comments that might affect the approval of a Bitcoin ETF in the U.S. He expressed concern over the role of crypto exchange Coinbase, hinting that it may not be the best partner for firms like BlackRock and Fidelity who want to launch a Bitcoin spot ETF.

Gensler didn't specifically mention the ETF filings, but he spoke about the "conflicting services" and "limited risk monitoring" offered by crypto exchanges. He warned that exchanges could be secretly trading against you, something that wouldn't happen on the New York Stock Exchange or NASDAQ.

The SEC recently took action against Coinbase for operating without proper registration. This makes people wonder if Coinbase is a suitable partner for the Bitcoin ETF.

Bloomberg analyst, Eric Balchunas, reacted to Gensler's comments, saying they seem to reduce the value of Coinbase's surveillance sharing agreement (SSA). However, he believes that BlackRock might be working with Coinbase to fix the issues, making ETF approval possible.

However, industry observer Bias Knox believes that Gensler's decisions might be influenced more by politics than the real benefits of Bitcoin ETFs. He thinks Gensler may use the regulation of crypto as a political achievement.

Bloomberg Intelligence analyst, James Seyffart, fears that Gensler's comments may lead to a denial of the Bitcoin ETF approval. The SEC has frequently rejected Bitcoin ETF applications over transparency and market manipulation concerns.

Coinbase and the SEC are meeting in court today for a pre-motion hearing. At the time of this report, the price of Bitcoin was $30,403.