Gary Gensler explained why the SEC body rejected all the Bitcoin spot ETF applications in the past.
Gary Gensler is Chairman of the United States Securities Exchange Commission (SEC). This American financial regulator is regulating the crypto sector forcibly with the help of traditional securities laws. This year, half a dozen crypto companies were sued by this agency.
Recently Gary Gensler talked about crypto exchanges in a webinar. Gensler said that almost all the crypto exchanges are failing to follow all the better levels of security & safety measures, to ensure that customers are safely trading at the corresponding platforms.
According to Gensler, crypto exchanges are playing the role of market maker and secondly, they monitor limited numbers of activities, which means they are not fully monitoring the platform to ensure the prohibition of wash trading, insider trading, market manipulation, etc.
Gensler confirmed that these reasons were one of the main reasons why the SEC body rejected all the Bitcoin spot ETF applications in 2022.
The SEC chairman failed to talk about any particular crypto exchange or any particular Bitcoin spot ETF application but indirectly confirmed that BlackRock & Fidelity will not get any favour with the use of the “Coinbase” name in their corresponding spot ETF applications.
In the present time nearly half a dozen Bitcoin spot ETF applications are waiting on the SEC’s table to secure regulatory approval.
Last week Fidelity & BlackRock submitted some additional documents to support their applications with the SEC.
BlackRock & Fidelity mentioned that Coinbase will be one of the firms which will monitor their Bitcoin spot ETF products and that will ensure that manipulation-like activities will remain away.
But the latest statement passed by Gary Gensler is giving a hint that the SEC agency is very close to rejecting all kinds of Bitcoin spot ETF applications.
Few reports claimed that the Coinbase exchange may bring new safety & security measures to fulfil the actual requirement that the SEC body wants but it will be a matter of time, as the SEC body never responded to the Coinbase team against any kind of request.