Father Knows Best: SEC Chair Gensler Maps Crypto Regulatory Plan, Further Entrenching Bitcoin

Increased regulatory certainty out of Washington minimizes FUD, which reduces drag on the Bitcoin to US dollar rate and supports large caps like Ethereum. This clarity drives institutional investment.Chair Gensler has de facto framework for crypto regulation and defined roles for Congress, SEC, CFTC, and banking regulators. ETF constitution and custody rules are being prepared.Gensler often emphasizes that he is both empowered and mandated to regulate securities. However, blockchains and their tokens generally tend to defy easy categorization in the existing regime.Gensler prefers cash-settled derivatives-backed Bitcoin ETFs over ones with direct holdings because they would have the additional protections of the Investment Company Act of 1940.Regulation of the crypto space will further legitimize the Bitcoin network and entrench cryptocurrencies more broadly in the US financial system.