A landmark day for the cryptocurrency sector occurred on January 10, 2023, when the U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin exchange-traded funds (ETFs).
A few hours later, SEC Chair Gary Gensler restated in a statement that the organization still does not support bitcoin.
Gensler compared the usefulness of precious metals like gold and silver with the “speculative” character of bitcoin. According to him, the SEC is still “merit neutral” and does not support any specific assets or investments that underpin exchange-traded products.
In spite of this neutrality argument, Gensler made it clear that bitcoin is regularly used for money laundering, terrorist financing, and other illegal activities.
Gensler upheld the SEC’s cautious approach, despite data that demonstrates this impression of widespread illegal usage of bitcoin is out of date. Regarding the “risks associated with bitcoin and products whose value is tied to crypto,” he cautioned investors.
The assertion supports the SEC’s position that the majority of cryptocurrencies are investment contracts that are governed by its rules.
The SEC did not support bitcoin despite the ETF approvals being historic. Gensler cautioned investors about crypto-linked investments while reiterating the speculative, volatile, and connected nature of bitcoin to illicit activities.
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