SEC Chair Gary Gensler Reveals Key Requirements for Approval of Spot Bitcoin ETF

SEC Chair Gary Gensler discusses key requirements for the approval of a spot Bitcoin ETF in a Senate Banking Committee hearing.

Posted 10 months ago in Bitcoin

SEC Chair Gary Gensler being questioned by the Senate Banking Committee.

The Securities and Exchange Commission (SEC) Chair, Gary Gensler, was questioned by the Senate Banking Committee on Tuesday regarding the criteria necessary for the approval of a spot Bitcoin exchange-traded fund (ETF). Gensler outlined several key requirements that would need to be met in order for the SEC to give the green light to a Bitcoin ETF filing.

One of the primary considerations highlighted by Gensler is the need for effective investor protection measures. He emphasized the importance of robust market surveillance and custody solutions to mitigate potential risks associated with digital asset trading.

Gensler further emphasized the importance of ensuring fair and transparent pricing mechanisms for Bitcoin ETFs. The SEC Chair stressed the significance of obtaining accurate and reliable pricing data from reliable sources to prevent market manipulation and ensure accurate valuation of the underlying asset.

Another crucial factor mentioned by Gensler is the need for adequate liquidity in the Bitcoin market. He pointed out that the ETF market should be able to handle large capital inflows and outflows without significantly impacting the price of Bitcoin.

Furthermore, Gensler expressed the importance of having clear and comprehensive risk disclosures to make potential investors fully aware of the risks associated with investing in Bitcoin ETFs. He highlighted the need for disclosure requirements that include information on the underlying market, potential conflicts of interest, and other relevant factors.

Overall, Gensler stated that while the SEC is committed to facilitating innovation and providing investors with more opportunities, they will prioritize the protection of investors and the integrity of the market when assessing Bitcoin ETF filings.

Last updated 9/12/2023, 8:34:57 PM


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