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In a recent interview, SEC Chair Gary Gensler provided updates on the ongoing review of multiple applications for spot bitcoin exchange-traded funds (ETFs). While Gensler didn't reveal all the details, he did acknowledge that the SEC staff is actively engaged in the review process, indicating that the applications are receiving careful scrutiny.
No Preemptive Judgments
Gensler refrained from making any preemptive judgments, emphasizing that the staff is diligently evaluating the numerous filings. This approach reflects the SEC's commitment to maintaining a rigorous and unbiased review process.Silence on Grayscale Case
When questioned about the next steps in the SEC's ongoing case against Grayscale Investments, particularly following their decision not to appeal a recent court ruling, Gensler chose not to provide any comments. The SEC's stance on this matter remains undisclosed.Individual or Collective Approval?
Furthermore, Gensler did not specify whether the SEC would consider approving individual ETFs or prefer a collective approval should the circumstances permit. The approach taken will depend on various factors and considerations.Extended Review Processes
The SEC's recent decision to institute additional proceedings for the approval or disapproval of proposed spot bitcoin ETFs from prominent asset managers has led to additional delays. These delays are expected to prolong the review processes by at least another month, contributing to the thoroughness of the assessment.Stringent Regulatory Process
Gensler highlighted the comprehensive and rigorous nature of the SEC's regulatory process for exchange-traded products. He emphasized that there are multiple filings under consideration, involving various divisions within the SEC. Notably, the Division of Corporation Finance plays a pivotal role in providing feedback, a process akin to taking a company public through an initial public offering (IPO).A Time-Tested Process
Gensler underscored that the SEC's regulatory processes have been developed and refined over several decades. The SEC's staff, which includes the Disclosure Review Team, plays a vital role in offering feedback and guidance to potential issuers. This commitment to a well-established process ensures that the review of ETF applications remains meticulous and thorough.
