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Chair Gary Gensler Clarifies on Bitcoin Spot ETF Approval
According to the offiicial statement published by Chair Gary Gensler: The U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of multiple spot Bitcoin Exchange-Traded Products (ETPs), according to a statement released on January 10, 2024, by Chair Gary Gensler. This decision marks a historic moment for Bitcoin and the greater cryptocurrency sector.
Gensler's statement clarifies previous disapprovals of a number of ETPs in the past, including Grayscale's proposal for converting their Bitcoin Trust into an ETP. However, a recent ruling by the U.S. Court of Appeals for the District of Columbia suggested the SEC failed to adequately justify its rejection of Grayscale's proposal. In response, the Commission has decided to approve the new ETPs.
Gensler further explained that the SEC's approval is limited to ETPs holding a non-security commodity, Bitcoin, and this should not be interpreted as a sign of the Commission's stance on other crypto assets. The SEC will continue to enforce strict compliance with regulations, and Gensler highlighted bearers of crypto assets should remain aware of the risks associated with Bitcoin and its linked products.
Today's decision by SEC brings potential new opportunities for investors to participate in the Bitcoin market in potentially more secure ways. However, as with all investments, due diligence is crucial, and investors are encouraged to understand both the potential rewards and risks. Investors can trust that Binance will continue to provide them with updated and relevant news developments in the crypto market.
Gensler's statement clarifies previous disapprovals of a number of ETPs in the past, including Grayscale's proposal for converting their Bitcoin Trust into an ETP. However, a recent ruling by the U.S. Court of Appeals for the District of Columbia suggested the SEC failed to adequately justify its rejection of Grayscale's proposal. In response, the Commission has decided to approve the new ETPs.
Gensler further explained that the SEC's approval is limited to ETPs holding a non-security commodity, Bitcoin, and this should not be interpreted as a sign of the Commission's stance on other crypto assets. The SEC will continue to enforce strict compliance with regulations, and Gensler highlighted bearers of crypto assets should remain aware of the risks associated with Bitcoin and its linked products.
Today's decision by SEC brings potential new opportunities for investors to participate in the Bitcoin market in potentially more secure ways. However, as with all investments, due diligence is crucial, and investors are encouraged to understand both the potential rewards and risks. Investors can trust that Binance will continue to provide them with updated and relevant news developments in the crypto market.
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