Gensler stressed the significance of complete, equitable, and accurate disclosure for investment contracts and investment schemes made available to the American people in the interview.
In a similar event, Nate Geraci, president of the ETF Store, stated that it is doubtful that the SEC would soon approve a spot Bitcoin exchange-traded fund (ETF).
The SEC will not authorize such a product until bitcoin exchanges are regulated, according to Gensler, Geraci wrote in his tweet.
The “basic bargain” in the United States, which mandates that businesses selling investment contracts and investment schemes give complete, fair, and true information to the investing public, was stressed by Gensler in the interview. He said that the fundamental economics are what matter and that “the labels don’t matter.”
He also made it clear that as long as an investment complies with the fundamental agreement of full disclosure, it does not matter whether it is referred to as loan, earning, yield, or APY.
Geraci asserts that the SEC is more likely to force the delisting or closure of futures-based products than it is to approve a spot bitcoin ETF, even if it loses the Grayscale litigation.
A significant barrier to the approval of such a product has been the absence of regulation of cryptocurrency exchanges, and Gensler’s remarks imply that this barrier is unlikely to be eliminated very soon.
Because cryptocurrency exchanges are not regulated and the SEC places a strong focus on regulation and complete disclosure, the certification of such a product is probably going to be delayed for some time.