Gary Gensler’s Vote Decides Split Bitcoin ETF Showdown

Gary Gensler plays a pivotal role in approving Bitcoin ETFs, has the SEC chair’s stance on crypto changed?

Gary Gensler takes no blame for the mess surronding him.
Created by Gabor Kovacs from DailyCoin
  • The SEC finally approved the first Bitcoin Spot ETF on January 10. 
  • A commission notice revealed SEC chair Gensler as the deciding vote in a split ballot. 
  • The SEC chair shared that he had no choice but to approve the Bitcoin ETFs

Consistently warning investors that the crypto industry is rife with fraud, Securities and Exchange Commission (SEC) Chair Gary Gensler’s dissenting opinion has been no secret, leading some to speculate that he would likely vote against the Bitcoin ETF, given his stringent crackdown and policies throughout 2023. 

However, throwing a curveball to industry expectations, Gensler surprised the crypto community by unexpectedly emerging as the deciding vote in favor of approving Bitcoin ETFs. Is the SEC Chair finally warming up to the crypto scene? 

Gensler Pushes Bitcoin ETFs Through Finish Line

After months of rigorous scrutiny and numerous rejections—over 20 to be exact—the SEC made a momentous decision on Wednesday, January 10, by officially giving the green light to the Bitcoin Spot ETFs.

SEC bitcoin ETF vote results.
SEC Bitcoin ETF vote results. Source: SEC

What caught the crypto community’s attention was the unexpected backing from the crypto skeptic SEC chair. Gary Gensler, alongside commissioners Hester Peirce and Mark Uyeda, were three of the five committee members who approved the Bitcoin ETF, marking a major win for the crypto industry. Commissioners Caroline Crenshaw and Jaime Lizárraga remained on the other side of the spectrum, voting against the approval of Bitcoin ETFs. 

While Commissioner Peirce is recognized for her pro-crypto stance, Gensler’s approval raised eyebrows within the industry. The unexpected approval prompted speculation about a potential shift in the regulator’s outlook on cryptocurrencies.

Gensler Shuts Down Speculations of Shift in Stance

Gensler himself swiftly dispelled any notions of a change in stance. The SEC chair reinforced his negative stance, sharing that the SEC’s loss to Grayscale left them with no alternative but to approve the 11 Bitcoin ETFs.

In response to the approval, Gensler emphasized, “We did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”

While Gensler maintained his critical stance, Commissioner Caroline Crenshaw expressed dissatisfaction with the approval, deeming it unsound and ahistorical.

Trouble in Paradise? SEC Commissioner Crenshaw Disapproves Bitcoin ETF

Commissioner Caroline Crenshaw stood firm in her decision to reject Bitcoin ETFs. She strongly disagreed with the approval order, emphasizing her concerns about fraud, manipulation, and the perceived lack of adequate oversight within the crypto industry.

In her detailed statement, Crenshaw didn’t mince words as she highlighted misconduct in the industry, pointing to bad actors like SBF to underscore her argument that Bitcoin’s price is susceptible to manipulation. She used the recent SEC hack as an example of potential price manipulation.

Maintaining her dissenting stance, Crenshaw posed a rhetorical question: “Wasn’t Bitcoin supposed to solve this?” positing that the Bitcoin ETF approval went against Bitcoin’s banking the unbanked manifesto.

On the Flipside

  • Bitcoin Spot ETF’s trading volume surpassed $4.5 billion on its first day. In just the first hour, the trading volume reached $1.74 billion.
  • Despite the Bitcoin ETF approval, a significant segment of the financial world remains skeptical about Bitcoin and cryptocurrencies. 

Why This Matters

Despite SEC Chair Gensler’s skepticism about the crypto space, his dissenting stance did not stop him from ultimately approving Bitcoin ETFs.

Read where you can trade Bitcoin ETFs:
NASDAQ, NYSE, Cboe Gear Up to Offer Approved Bitcoin ETFs

Read more about the SEC’s warning against FOMO:
SEC Warns Against Crypto FOMO Amid Surging Bitcoin ETF Hype

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.