Amid controversy over Gary Gensler's comments on the cryptocurrency market, the SEC receives another application to create a Bitcoin spot ETF from Franklin Templeton.
Global asset manager with over $1,5 trillion under management, Franklin Templeton, has joined the long list of asset managers seeking approval from the Securities and Exchange Commission (SEC) to launch a Bitcoin spot exchange-traded fund in the United States.
According to one presentation Filed with the SEC yesterday, the fund, called Franklin Templeton Digital Holdings Trust, will mirror the price performance of Bitcoin on the spot market.
The SEC is currently reviewing several ETF applications it has received from other asset management firms such as BlackRock, Fidelity and Ark Invest, which are also seeking to create an exchange-traded fund that would track the price of Bitcoin and allow investors direct access to the cryptocurrency.
However, amid growing interest from asset managers in Bitcoin, Gary Gensler, current chairman of the SEC, continues to maintain his negative view of the crypto market.
During a hearing before the U.S. Senate Committee on Banking, Housing and Urban Affairs, Gensler boasted of his many years of experience in the world of finance, stating that in all of them he had never seen a market as “riddled” with abuse and fraud as that of cryptocurrencies.
Gensler’s current view, which he has held since taking office as SEC chairman in 2021, contrasts with what he had expressed about crypto assets during his time as a professor at MIT. In his classes, Gensler had pointed out that cryptocurrencies and blockchain technology had brought significant value to the financial system and that digital currencies had great potential to drive innovation in payment systems and accelerate financial inclusion.
However, his recent negative comments have once again sparked debate over Gensler's neutrality and ability to enforce securities laws in a transparent manner. Although the SEC chairman had previously noted that cryptocurrencies launched through an ICO (initial coin offering) can be classified as securities, many consider his enforcement to have been arbitrary and abusive.
During the hearing, South Carolina State Representative Tim Scott said the SEC's job should be to foster competition, innovation and economic growth, rather than stifling the cryptocurrency industry.
The SEC is also reviewing again Grayscale's request to transform its Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot ETF, after Appeals Court Judge Neomi Rao overturned the SEC’s rejection of the application and granted Grayscale regulatory review of its proposal.
Judge Rao said the SEC had acted arbitrarily and capriciously in rejecting Grayscale's application for GBTC without explaining why it had treated it differently than similar products.
Continue reading: Will the SEC approve a Bitcoin spot ETF soon?
