on the crypto
US Securities and Exchange Commission (SEC) chairman Gary Gensler once again renewed his support for the approval of Bitcoin Exchange Traded Funds (ETFs) in the country.
Gensler told the Financial Times' Future of Asset Management North America conference that his primary focus is on Bitcoin ETFs that invest in futures contracts and trade on the Chicago Mercantile Exchange under the Investment Company Act of 1940.
He revealed that the Investment Act of 1940 offers significant protection for mutual fund and ETF investors, adding that those venturing into Bitcoin ETFs also deserve similar protection, particularly against fraud and market manipulation.
Bitcoin ETF approval around the corner
The SEC rejected numerous Bitcoin ETF applications filed during Jay Clayton's administration, but Gensler's recent comments have given applicants the idea that the regulator will soon approve such a product.
However, since Gensler revealed that his administration would be open to seeing the first Bitcoin ETF go live in the US, none have yet been approved by the commission.
While trying to keep the candidates' hopes alive, Gensler said he was looking forward to the agency "reviewing the implementation of Bitcoin ETFs," which could be centered on applications that take into account the investment company law of the country. 1940.
The long wait for a Bitcoin ETF
After the launch of the Bitcoin ETFs in Canada and Brazil, the crypto space was looking forward to seeing a similar product go live in the United States.
Although the SEC has received several requests in the past, including from VanEck, the agency has been reluctant to approve one due to concerns about potential market manipulation and fraud.
With Gensler appointed as SEC chairman in April, many have hoped there will be approval for a Bitcoin ETF in the United States.
Investor protection is essential
Although Gensler has always been open to Bitcoin ETFs, his main concern is investor protection, given the sad stories that have flooded the cryptocurrency market, which he believes can be avoided via the Investment Company Act of 1940.
“This crypto space now certainly has a dimension that without those investor protections of banking, insurance [and] securities [and] market oversight laws, I think someone will get hurt. Many people risk getting hurt, ”he said.
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