What next as SEC chair maintains his tough stance on crypto

• Gary Gensler took a firm stance on crypto regulation and Bitcoin ETFs.
• Bitcoin maintained stability amid regulatory discussions. 

The regulatory landscape surrounding Bitcoin has been a topic of intense debate and scrutiny. The latest chapter in this ongoing saga unfolds as Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), delivered noteworthy remarks during a congressional hearing.

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Taking shots

Gensler’s statements reaffirmed his stance on cryptocurrencies, particularly taking aim at what he referred to as crypto “hucksters.” He accused companies in the digital assets space of mishandling customer assets and criticized the practice of commingling assets, which, in his view, has led to unfavorable outcomes.

One of the most critical issues discussed was the SEC’s position on spot Bitcoin exchange-traded funds (ETFs). Gensler disclosed that the agency has yet to determine its course of action following a judge’s ruling that mandated a reevaluation of its stance on Bitcoin ETFs.

This ruling, delivered in August, cast doubt on the SEC’s prior rejection of Bitcoin ETF applications, deeming it “arbitrary and capricious.” Gensler’s testimony, however, did not divulge details on the timing or the approach SEC would take for ETF applications.

Rep. Patrick McHenry, Chairman of the House Financial Services Committee, expressed concerns about the SEC’s legal battles and criticized what he referred to as the agency’s “crusade against the digital assets ecosystem.”

He contended that the SEC’s actions were sowing confusion and causing lasting harm within the industry. Gensler, during questioning, clarified that Bitcoin does not fall under the category of a security.

👉 @SECGov Chair @GaryGensler continues his blatant disregard for Congress in pursuit of a radical agenda that threatens the integrity of our financial markets, protection of investors, & our economic competitiveness. Our patience is wearing thin.

📺 #WATCH my opening remarks ⬇️ pic.twitter.com/MTJIdNaBGD

— Patrick McHenry (@PatrickMcHenry) September 27, 2023

These developments have the potential to significantly impact sentiments within the Bitcoin community and among investors. Gensler’s persistent critique of how crypto companies handle customer funds and the ongoing uncertainty regarding Bitcoin ETFs may contribute to regulatory apprehensions.

BTC remains relatively the same

Nonetheless, at the time of reporting, the king coin’s price stood at $26,366, indicating a 0.41% increase over the previous 24 hours. This stability in price amidst regulatory discussions may indicate that investors remain cautiously optimistic about Bitcoin’s future.

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Long-term holders of Bitcoin continue to demonstrate their unwavering support for the cryptocurrency.

Reflexivity Research’s findings revealed that the percentage of Bitcoin supply held by these committed investors is approaching levels not witnessed since late 2015. The finding underscored the enduring confidence among BTC long-term investors.