The United States Securities and Exchange Commission (SEC) authorized the first exchange-traded bitcoin futures fund (ETF) a few days ago, which skyrocketed the price of BTC and sparked a string of approvals. Despite the success of ETFs already traded on Wall Street, the body’s chairman does not seem overly enthusiastic about the new financial instruments.
“Investors are not protected the way they should, whether they enter the stock or bond markets that we have monitored for so long. Without that, I think it really is, as I have told others, a bit of the Wild West,” Gary Gensler recently commented. The crypto ecosystem, by contrast, sees a huge step forward in the adoption of digital assets.
“These markets operate around the world, 24 hours a day, seven days a week, they do not have similar protections against fraud and manipulation,” Gensler added, in a clear call to the US government to move forward on a framework. More precise regulatory framework for the crypto market.
The aim is to incorporate most of this space within the scope of investor protection.
Gensler’s comments stifled the hopes of those who believed the SEC could approve Bitcoin ETFs this year, and now the most likely predictions place authorization in mid-2022. It should be noted, at this point, that futures ETFs are not under the tutelage of the SEC, but are regulated by the Commodity Futures Trading Commission (CFTC).