U.S SEC Chair Criticizes Crypto Industry During Senate Hearing

• For years, the SEC has ignored requests for a Bitcoin exchange-traded fund (ETF).
• The SEC Chair has taken a harsh stance against the crypto market under his supervision.

U.S. SEC Chair Gary Gensler went on to criticize the crypto industry today during a Senate hearing with lawmakers, but he would not provide any hints as to the agency’s plans regarding the numerous applications for Bitcoin spot ETFs that it is presently evaluating.

Senator Bill Hagerty (R-TN) questioned Gensler about what the SEC needed to see in a submission to authorize a spot Bitcoin ETF in light of the recent seismic decision siding with Grayscale against the agency.

Ongoing Scrutiny

On Tuesday, Gensler updated the Senate Banking Committee that the SEC was still considering the matter. After Grayscale filed a lawsuit against the SEC last month, the court sided with the company and stated that the SEC’s refusal of Grayscale’s spot Bitcoin ETF application must be reconsidered.

For years, the SEC has ignored requests for a Bitcoin exchange-traded fund (ETF), which would provide investor’s access to Bitcoin without requiring them to actually own any of the cryptocurrency.

Gensler said once again today that he believed the sector was a Wild West of non-compliance. Some senators have accused Gensler of limiting innovation by not being specific enough in his demands of the cryptocurrency industry.

Gensler then drew parallels between the current American crypto sector and the era before the Securities and Exchange Commission was established in 1934. The SEC Chair has taken a harsh stance against the crypto market under his supervision, filing lawsuits against prominent crypto companies.

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