Gary Gensler’s Criticism of US Securities Regulation
In 2019, Gary Gensler, before his appointment to the Securities and Exchange Commission (SEC), expressed his criticism of the US securities regulator for its “inconsistent” approach to spot Bitcoin (BTC) products, as seen in a resurfaced video.
During a fireside chat with SEC commissioner Hester Peirce at the 2019 MIT Bitcoin Expo, Gensler commented on the regulation of blockchain technology. He noted that while Bitcoin futures and Ethereum futures have been allowed, Bitcoin exchange-traded funds (ETFs) have yet to be approved. “It feels a little inconsistent,” he said.
Gensler further observed that, while the laws governing the two products may not be exactly the same, they are “quite similar”. This inconsistency, he suggested, may be holding back the development of Web 3.0 and blockchain technology, as well as potential investments in the same.
Exploring Web 3.0 And Gary Gensler’s Views
The crypto community on X (Twitter) recently highlighted the contrast between Gary Gensler’s views on spot Bitcoin ETFs.
“Gary Gensler says Gary Gensler is wrong,” market analyst Zack Voell commented, while another X user remarked, “We missed out on chill and normal Gensler.”
To date, the SEC has only approved Bitcoin and Ethereum futures ETFs. However, since 2017, the SEC has rejected spot Bitcoin ETF applications, and Gensler has continued this tradition, claiming the funds don’t have enough safeguards to protect against market manipulation.
Questions around Web 3.0 and its relationship to blockchain technology and investing have been asked, such as “how do I invest in web 3.0?”, “is web 3.0 blockchain?”, “how can I invest in web 3.0?”, “is metaverse and web 3.0 the same?”, “is blockchain web 3.0?”, “gary vee web 3.0?”, and “does web 3.0 exist?”
Gensler’s SEC was sued by asset manager Grayscale for rejecting its bid to convert its existing Bitcoin trust into a spot ETF.
The court determined that the SEC’s decision was “arbitrary and capricious” and they did not appeal the ruling. This has caused many to ask questions such as: “How do I invest in web 3.0?”, “Is web 3.0 blockchain?”, “How can I invest in web 3.0?”, “Is metaverse and web 3.0 the same?”, “Is blockchain web 3.0?”, “Gary Vee web 3.0?”, and “Does web 3.0 exist?”
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