Benzinga - Securities and Exchange Commission (SEC) Chair Gary Gensler on Wednesday confirmed that the agency is still evaluating a court’s decision regarding Grayscale Investments’ pursuit of a spot Bitcoin (CRYPTO: BTC) exchange-traded fund (ETF).
What Happened: During a senate hearing on Tuesday, Senator Bill Hagerty asked Gensler about the specific requirements for approving a spot Bitcoin ETF filing.
The SEC Chair responded by stating that the SEC is currently reviewing the Grayscale decision and “multiple filings around Bitcoin exchange-traded products.”
Gensler voiced concerns regarding the cryptocurrency sector’s integrity, suggesting the industry is currently fraught with “fraud, abuse, and misconduct.”
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Why It Matters: Gensler’s statement comes at a time when several firms, including BlackRock and Fidelity, have filed for spot Bitcoin ETFs. Asset manager Franklin Templeton is the latest Wall Street giant to enter the race for a spot Bitcoin ETF.
The U.S. Court of Appeals for the D.C. Circuit made a ruling in August, ordering the SEC to re-evaluate Grayscale’s application for a spot bitcoin ETF. Grayscale had filed a lawsuit against the SEC after its plan to convert its flagship GBTC fund was rejected.
Last week, Grayscale sent a letter to the SEC requesting a meeting and urging the agency to approve its spot bitcoin ETF.
It should be noted that the SEC still has the option to request an en banc hearing, which involves a rehearing with all three judges. After 45 days, the court will issue a final mandate outlining the next steps.
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