SEC chief Gensler criticizes Bitcoin ETFs despite approval

SEC chief Gary Gensler

SEC chief Gary Gensler heavily criticized Bitcoin in an interview, even though his agency just last Wednesday approved new investments designed to make investing in BTC easier for certain investors. Nevertheless, the 66-year-old advises against cryptocurrencies. He even considers the new findings to be contradictory.

SEC chief Gensler criticizes Bitcoin ETFs despite approval

SEC chief Gary Gensler heavily criticizes Bitcoin ETFs, even though he specifically approved the investment investments with his authority last Wednesday. He himself considers Bitcoin Spot ETFs to be deeply ironic.

“The whole thing is ironic. Satoshi Nakamoto said that this would be a decentralized system. And traditional finance provides centralization,” Gensler said in an interview with CNBC .

The same arguments have recently become increasingly louder in the crypto scene. Max Keizer, one of the best-known Bitcoin maximalists, considers the danger of centralization through ETFs to be imminent. These are managed on regulated exchanges and the Bitcoin purchased are in the hands of individual, large custodians.

“Imagine the irony when people say this week is historic. It was about centralization and traditional finance,” Gensler continues.

Some analysts see the approval of Bitcoin Spot ETFs as positive. They expect the exchange-traded funds to have a beneficial effect on the mass adoption of Bitcoin and ensure its normalization in society.

Gensler generally doubts Bitcoin

In addition to his criticism of ETFs, Gensler now even has doubts about Bitcoin in general. The SEC chief is even moving away from his previous position. Although he never made any specifically positive comments about Bitcoin, in the past he has repeatedly referred to BTC as the only decentralized cryptocurrency.

“There is a lot of centralization here. Essentially, Bitcoin is produced and operated by a handful of mining companies and the like.”

Gensler considers cryptocurrencies as a whole to be even more critical. According to his findings, these are mostly scams – a statement that the 66-year-old has made several times.

“Without wishing to condemn any individual token, I would argue that most of these tokens are in fact securities within the meaning of securities law. That’s why federal laws must be enforced on trading platforms.”

The American still does not recommend purchasing Bitcoin. He told CNBC that he had given Bitcoin new legitimacy by approving the funds.

“Bitcoin itself we have not endorsed, we have not supported it. Investors should be aware that the underlying asset is a highly speculative product.”

BTC is still not a legitimate means of payment, but is only used for illegal purposes. “Its usefulness is really limited to illegal activities: money laundering, sanctions, ransomware and the like.”

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