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Conflict Between Decentralization and Centralization
Satoshi Nakamoto’s Vision and the Reality of Centralization
SEC’s Stance on Bitcoin Spot ETF
Gensler’s Respect for Senator’s Criticism
The Future of Ethereum Spot ETF
Conclusion: Balancing Innovation and Regulation
Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), pointed out the irony of the recent launch of Bitcoin spot ETFs, which seems to contradict the original decentralized spirit envisioned by Bitcoin creator, Satoshi Nakamoto. Gensler revealed this point in an interview with CNBC, sparking curiosity and debate in the cryptocurrency world.
The mysterious figure, Satoshi Nakamoto, the mastermind behind Bitcoin, envisioned an independent electronic trading system that operates without trust. His 2008 Bitcoin whitepaper laid the foundation for a decentralized financial ecosystem. However, according to Gensler, this vision ironically led to a certain degree of centralization. Gensler commented on CNBC, “There’s an irony to it with ETFs — Satoshi Nakamoto said this would be a decentralized system and finance — and it has led to centralization.”
These ETFs that started trading recently have witnessed a cumulative trading volume of over $6 billion.
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Gensler made his comments immediately after the SEC approved a series of Bitcoin spot ETFs. Despite the approval, Gensler quickly clarified that it does not imply SEC’s endorsement of Bitcoin.
As a former blockchain instructor at MIT, Gensler, while acknowledging the innovation within the ledger system, remains cautious about the SEC’s role.
Regarding the criticism from Senator Elizabeth Warren, who previously supported Gensler’s appointment as SEC Chairman, Gensler expressed deep respect for different perspectives. Warren criticized the SEC’s decision on Bitcoin ETFs, emphasizing the need for cryptocurrencies to comply with basic anti-money laundering rules. While respecting Warren’s viewpoint, Gensler also emphasized his commitment to the law.
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Senator Elizabeth Warren: Approving Bitcoin ETF is a Mistake by the SEC
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When asked about the possibility of Ethereum spot ETFs, Gensler suggested a cautious approach. He compared the recent Bitcoin ETFs to approved gold and silver trading products, indicating that the current approval is limited to Bitcoin’s “non-security commodity-like tokens.”
The launch of Bitcoin spot ETFs ironically highlights the tension between the initial decentralized vision of cryptocurrencies and the evolving landscape of financial regulation.
BTC
ETF
ETH
Gensler
SEC
Further Reading
Senator Elizabeth Warren: Approving Bitcoin ETF is a Mistake by the SEC
Ripple Labs: Plans to Buy Back $285 Million Worth of Stock, Still Not Planning to List in the U.S.