Here’s why Blockchain Association’s Smith doesn’t expect a bitcoin ETF anytime soon

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Aug 3, 2021
  • The U.S. SEC is yet to announce its decision on WisdomTree’s application for a bitcoin ETF.
  • SEC chair Gary Gensler is expected to lay out his plan to regulate crypto in his speech later today.
  • Smith says Gensler is unlikely to approve a bitcoin ETF until we see some regulatory regime in place.

The U.S. Securities and Exchange Commission (SEC) is yet to announce its decision on WisdomTree’s application for a bitcoin ETF, after many failed attempts from several players in the past. While some are still positive that WisdomTree’s could mark the country’s first bitcoin ETF, Blockchain Association’s Kristin Smith holds a different opinion.

Kristin Smith’s remarks on CNBC’s “Squawk Box”

Smith doesn’t expect a bitcoin ETF anytime soon. On CNBC’s “Squawk Box”, she said:

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“SEC chairman Gary Gensler is indicated to lay out his plan to regulate crypto in his speech later today. I think he’s very passionate about consumer protection and wants to see more robust regulation of the underlying spot market for crypto. I don’t imagine he’s going to approve an ETF until we see some regulatory regime in place.”

Here’s what SEC’s Gensler really thinks about cryptocurrencies.

Blockchain Association has similar goals as the U.S. SEC

Smith is confident that it is possible to take bits and pieces from securities and commodities laws to devise a regulatory regime that doesn’t undermine the premise of the cryptocurrencies. During her interview, she highlighted that Blockchain Association also has similar goals as Gensler.

“We want legal certainty, we want to have strong markets that are filled with integrity, we want the consumers and investors to be protected. We are working hard with the chairman and our membership because we believe that if we actually have the right kind of regulation, it’ll be best for the U.S. market for the long-term,” she added.

Smith acknowledged that the U.S. Department of the Treasury has concerns related to money laundering when it comes to broader applications of the cryptocurrencies, and the SEC seeks full disclosure of information to investors, but expressed confidence that eventually “we will find a solution that meets law enforcement requirements without stifling the technology”.

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