Promise, swear, crash. Since the beginning of 2023, the US regulator has been strafing the crypto ecosystem with sanctions. Gary Genslerthe boss of SEC (Securities and Exchange Commission), does not skimp on fines and lawsuits against the various players. Coinbasechosen as a partner for the launch of ETF Spot Bitcoin is one of them. But can Gensler still remain objective after hammering home his aversion to the crypto sphere so much? Analysis.
Gary Gensler defends himself against the crypto world’s critics
This challenge from from a paper published by The Blockchain Association last month. Handwritten by the association’s policy director, Jake Chervinskythe document is clear. Chervinsky pleads for Gensler to reverse some of his decisions. In his view, the crypto industry is unable to obtain an objective judgment from the SEC. This is due to his boss’s previous assertionsG. Gensler.
« His unwavering view that all digital assets apart from bitcoin are financial securities means that he cannot make regulatory decisions with a fair, equitable and impartial point of view. »
Jake Chervinsky, policy director of The Blockchain Association
In the face of these accusations, Gensler naturally defends himself from any potentially biased views on the cryptocurrency sector. For him, he is simply following the law. He returned to these remarks in front of the media after a meeting of the commission on the regulation of money funds and brokers.
« I took an oath, as did my associates on the commission, to enforce the law established by Congress and interpreted by the Court. It’s about protecting the investing public and looking at the facts and circumstances surrounding each token and platform. [crypto]. «
Gary Gensler, SEC Director
Gensler considers himself fully aware of his ethical responsibilities. He known as « the tyrant considers his actions to be perfectly in line with the law, despite the fact that he continues to maintain regulatory uncertainty in the sector.
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Coinbase, the risk weighing on Bitcoin ETF applications?
At the same time, the noose continues to tighten around Gary Gensler, as more and more powerful institutions apply to the SEC to launch crypto activities. In June, the most powerful of these, BlackRockannounced its intention to launch its own Spot Bitcoin ETF. In the wake of this announcement, all competing institutional funds made similar requests. Until then, all Bitcoin Spot ETFs had been rejected one after the other. But this time around, will the SEC still be able to say no to all of them? With the risk of finding itself in a very uncomfortable situation afterwards. without an ironclad justification.
The concern with these various requests is using the Coinbase exchange to manage the bitcoins associated with these ETFs. Despite always wanting to work in concert with the authorities, Coinbase found itself unexpectedly sued by the SEC in June. The reasons given are always the same: if cryptos are considered to be shares, then Coinbase had no right to offer them to the general public without SEC approval. Except that the SEC has no desire to determine a clear status for these cryptos. Are they stocks? Commodities? Or totally new assets? The regulator refuses to give an opinion, which is very convenient when it comes to imposing sanctions.
In any case, Gensler continues to assert his opposition to exchanges, Coinbase included.
« They [les exchanges] could absolutely trade directly against you and play market markers, which you wouldn’t see, or expect to see on the NYSE or NASDAQ. »
Gary Gensler
For the SEC boss, exchanges aren’t secure and regulated enough for his liking. Thus, acceptance of Spot Bitcoin ETFs, even from behemoth BlackRock, could be denied, due to Coinbase’s presence in the loop. To have the end of this storyWe look forward to seeing you in the coming months.
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