The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, explains that some laws provide “significant investor protections” for exchange-traded funds (ETFs), including those seeking to invest in bitcoin futures. He is looking forward to the SEC reviewing such filings.

SEC Chairman Looks Forward to Staff’s Review of Bitcoin Futures ETF Filings

SEC Chairman Gary Gensler spoke about crypto regulation at Wednesday’s Future of Asset Management North America conference of the Financial Times.

In prepared remarks, he talked about “investment vehicles that provide exposure to crypto assets,” noting the fact that earlier this year, a variety of open-end mutual fund launched that invested in Chicago Mercantile Exchange’s (CME-traded) bitcoin futures .”

Gensler said, “Subsequently we’ve begun to see filings pursuant to the Investment Company Act[’40 Act] in regard to exchange-traded fonds (ETFs), seeking to invest in CME -traded Bitcoin futures,” further elaborating:

When combined with the other federal securities laws, the ’40 Act provides significant investor protections for mutual funds and ETFs. I look forward for the staff to review such filings.

In August, Gensler similarly said he looked forward to the staff’s review of ETF filings, “particularly if those are limited to these CME-traded bitcoin futures.”

He stressed the importance of investor protection at the conference. “This crypto space has grown to such a large extent that I believe someone will be hurt without the investor protections of banking and insurance, securities laws, market oversight, and banking. According to Gensler, “A lot of people will get hurt.” Gensler was quoted in the Financial Times.

The chairman has been encouraging crypto companies to visit the office to discuss whether they should register with SEC. Without naming specific platforms, he said, some companies have “said things publicly about some of those conversations.” Recently, Coinbase took to Twitter to talk about its lending product that the SEC threatened to sue over if it is launched. CEO Brian Armstrong called the securities watchdog’s behavior “sketchy.” The Nasdaq-listed company subsequently abandoned its plan to launch the product.

Gensler said Wednesday:

There are going to be times that people come in and we say: ‘Register.’ It’s not going to be everybody comes in and says: ‘Can you please tell us we are not a security.’

Do you think the SEC will approve a bitcoin ETF or bitcoin futures ETF this year? Please let us know your thoughts in the comments below.

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