Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC) since 2021, is speculated by experts to be accumulating Bitcoin Exchange-Traded Fund (ETF) applications with a potential intent of collective rejection. This move could lead to widespread lawsuits and significantly impact the cryptocurrency sector. Gensler’s controversial stance on Bitcoin ETFs has been a critique of the SEC’s inconsistent approach towards these financial instruments.

Under Gensler’s leadership, the SEC has consistently prioritized investor safety, rejecting multiple Bitcoin ETF applications. Despite a legal victory for Grayscale in June 2022, where the court ruled in their favor against the SEC following their refusal to convert its Bitcoin trust into an ETF, the regulatory body has only approved futures ETFs for Bitcoin and Ether. The SEC maintains that these offer more robust protection against potential market misconduct.

Entities like Valkyrie Bitcoin Funds, a specialized alternative asset management firm, have amended their prospectus for Spot Bitcoin ETFs, joining industry leaders like BlackRock (NYSE:BLK), Ark Invest, WisdomTree, Fidelity, VanEck, and Bitwise. The SEC is yet to make the final decision on these Spot BTC ETF applications.

Vanguard has chosen not to participate in this trend due to its focus on “asset classes with intrinsic values,” reflecting Vanguard Founder’s stance on ETFs as stated by Vanguard CEO Tim Buckley in a CNBC interview.

Meanwhile, Bitcoin’s price has recovered above $35,500 today.