Bitcoin ETF? Bank of Singapore says SEC under Gensler may alter view on digital currencies

#Bitcoin ETF? Bank of Singapore says SEC under Gensler may alter view on digital currencies as US$176 billion sell-off highlights risks

Bitcoin has declined by more than a fifth since the digital money peaked at US$41,981 on January 8
Gensler, Biden’s pick as SEC chairman, has focused on blockchain, digital currencies and fintech during his teaching time at MIT Sloan

The US Securities and Exchange Commission (SEC) may become more accommodative to cryptocurrencies under the new incoming chief, a potential boost for digital assets seeking to establish their reputation amid Bitcoin’s US$176 billion sell-off from record-high this month. The market regulator has been sceptical about digital money but incoming chairman Gary Gensler may be willing to allow broader investment in the asset, according to Bank of Singapore, citing his teaching on the subject at the Massachusetts Institute of Technology. Gensler, who is President Joe Biden’s pick to lead the SEC, has focused on blockchain, digital currencies, financial technology, and public policy during his time at MIT Sloan which he joined in 2018, according to the faculty. He also led the Commodity Futures Trading Commission from 2009 to 2014 under the Obama administration. “An important milestone here would be if the SEC approved an exchange-traded fund (ETF) for Bitcoin or another cryptocurrency,” chief economist Mansoor Mohi-uddin wrote in a report published on January 22. “This would offer a trustworthy, reliable investment vehicle, allow fresh participants to enter digital currencies, improve liquidity, lower volatility and help deal with reputational risks.”