Sep 28, 2023 Alexander Chelpanov
Bipartisan Pushback: SEC's Gensler Faces Heat Over Bitcoin ETP Stance
As September 2023 unfolds, the digital asset landscape is buzzing with significant developments. Central to this is the topic of Bitcoin ETPs (Exchange-Traded Products), which has elicited strong reactions from both the industry and the political sphere.
Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), is facing increasing heat. Both sides of the political aisle in Washington are vocally expressing their concerns. On September 27, a bipartisan group, consisting of Reps. Tom Emmer (R-Minn.), Ritchie Torres (D-N.Y.), Wiley Nickel (D-N.C.), and Mike Flood (R-Neb.), penned a letter urging Gensler to shed light on the SEC's hesitation to approve a spot Bitcoin ETP. Their urgency is accentuated by the recent court ruling in favor of Grayscale, a predominant digital currency asset management company, earlier in the month.
This isn't the first instance of lawmakers seeking transparency. Just weeks before the joint letter, Rep. Torres had addressed an open letter to Gensler, drawing attention to what he dubbed as the SEC's "regulation by enforcement" strategy. The Court of Appeals, too, had echoed a similar sentiment regarding the SEC's handling of Grayscale's ETP application.
Adding more layers to this unfolding drama, Reps. Warren Davidson and Tom Emmer had taken a bold step in June 2023, introducing a bill with the intent to unseat Gensler from his position, expressing discontent with his oversight of the crypto sector.
The relationship between the SEC and the crypto domain has a history of being intricate. Rewinding to 2021, Sen. Elizabeth Warren (D-Mass.) had posed a pivotal question about the need for Congress to potentially bolster the SEC's authority over crypto markets. Gensler's response at the time was collaborative, underscoring the necessity to address regulatory ambiguities.
Now, with the 2024 elections on the horizon, there's an undercurrent of anticipation in the crypto community. Influential voices like Coinbase CEO Brian Armstrong have been speculating about a potential reshuffling of the regulatory deck, especially if there's a political shift after the polls.
As September 2023 reaches its climax, the magnifying glass on regulatory bodies intensifies. With the crypto sector evolving, ongoing dialogues among regulators, industry trailblazers, and policymakers will inevitably shape the future trajectory of digital assets in the U.S.
