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- The US SEC has again postponed making a decision on multiple spot Bitcoin ETF applications
- The decision comes a day after Gary Gensler’s criticism during the congressional hearing
The US Securities and Exchanges Commission (SEC) has once again taken steps to delay its decision on spot Bitcoin ETFs. The affected applications this time belong to Blackrock, an investment management giant. Moreover, the move has also delayed the crypto plans of Invesco, Valkyrie and Bitwise.
Read Bitcoin’s [BTC] Price forecast 2023-24
Most of these companies had filed for a spot Bitcoin ETF by June 2023. The first decision to postpone the ETF was made at the end of August 2023. In its latest decision, the SEC said,
“The Commission shall initiate a proceeding under section 19(b)(2)(B) of the Act to determine whether to approve or disapprove the proposed rule change (…) The initiation of a proceeding does not indicate that the Commission has reached any conclusion on any of the issues involved.”
SEC chairman is questioned during congressional hearing
The latest decision came a day after the chairman of the SEC – Gary Gensler – was questioned during a hearing in the US Congress. During the event that took place on Wednesday (September 27), Gensler continued to maintain his pessimistic stance on the crypto market.
The SEC head also criticized crypto firms for their handling of customer funds, claiming that commingling funds was “a recipe that would not yield good results.” The comment came days before the court hearing of Sam Bankman-Fried, the former CEO of the now bankrupt crypto exchange – FTX.
The exchange collapsed in November 2022 after reports surfaced about its exchange token – the FTT which made up the bulk of its balance sheet. During the bankruptcy process, information about funds mixing Alameda and FTX also made headlines.
Furthermore, the chairman agreed that Bitcoin [BTC] was not an effect, but declined to make a decision on its commodity status. Gensler also said the commission has yet to take action on the court’s order on its Grayscale decision.
The crypto asset management company had tried to convert its GBTC into a spot Bitcoin ETF, but the move was rejected. The case was taken to court, with the judge concluding that the decision to dismiss the case was “arbitrary and capricious.”
Speaking on this issue, the Chairman of the SEC said:
“It is still an active consideration of the committee,” further stating that “we have great respect for the courts.”