Bitcoin ETF Approval Odds Grow Longer After Gensler Critique

The FSOC discussed cybersecurity and received a presentation from the Office of Financial Research on financial market developments.

Freshly sworn-in Securities and Exchange Commission Chairman Gary Gensler told Congress that the cryptocurrency market “could benefit from greater investor protection,” signaling that a long-stated prerequisite for SEC oversight of the industry has not been met.

Bitcoin ETF approval was being touted by many industry boosters as a nearly sure-thing in 2021, amid new SEC leadership, Wall Street’s growing crypto embrace and the launch of similar funds in Canada.

However, the SEC under Gensler’s leadership has punted its deadline to make a decision once already, and the chair’s scrutiny of crypto exchanges suggests the agency is proceeding cautiously.

Bitcoin, the world’s largest cryptocurrency, has doubled so far in 2021 after climbing over 300% last year.

Three Bitcoin ETF filings have been acknowledged by the SEC, meaning it has a limited amount of time to either approve or reject the proposals.

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