SEC Chairman Gary Gensler Looks Forward to Reviewing Bitcoin Futures ETF Filings – Regulation

US Securities and Exchange Commission (SEC) Chairman Gary Gensler explains that some laws provide “significant investor protections” for exchange traded funds (ETFs), including those seeking to invest in Bitcoin futures. He looks forward to the SEC's review of such filings.

The SEC Chairman looks forward to staff reviewing the Bitcoin Futures ETF filings

SEC Chairman Gary Gensler spoke about crypto regulation and Bitcoin exchange-traded funds (ETFs) at the Financial Times' Future of Asset Management North America conference on Wednesday.

In prepared remarks, he discussed "investment vehicles that provide exposure to crypto assets" and noted that "earlier this year, a number of mutual funds were launched that invested in Bitcoin futures traded on the Chicago Mercantile Exchange (CME)."

Gensler added: “Subsequently, we began to see filings under the Investment Company Act [’40 Act] regarding exchange-traded funds (ETFs) seeking to invest in CME-traded Bitcoin futures,” explained:

Combined with the other federal securities laws, the '40 Act provides significant investor protection for mutual funds and ETFs. I look forward to staff reviewing such documents.

In August, Gensler similarly said he looked forward to the staff's review of ETF submissions, "particularly when limited to these CME-traded Bitcoin futures."

He also emphasized the need for investor protection at the conference on Wednesday. "This crypto space is certainly at a size now that without these investor protections from banking, insurance, securities laws, [and] market oversight, I think someone is going to get hurt. It's likely that a lot of people are going to get hurt," Gensler was quoted as saying by the Financial Times.

The chairman has urged crypto companies to come in and discuss whether they need to register with the SEC. Without naming specific platforms, he said some companies had "talked publicly about some of these conversations." Recently Coinbase went to Twitter to talk about its lending product, which the SEC threatened to sue if it comes to market. CEO Brian Armstrong called the securities watchdog's behavior "sketchy." The Nasdaq-listed company later leave his plan to bring the product to market.

Gensler said on Wednesday:

There will be times when people come in and we say, 'Register.' Not everyone is going to come and say, 'Can you please tell us we're not a security service?'

Do you think the SEC will approve a Bitcoin ETF or a Bitcoin futures ETF this year? Let us know in the comments section below.

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