Former attorney at the United States Securities and Exchange Commission (SEC), Tom Gorman, recently stated that approval of a Spot Bitcoin (BTC) Exchange-Traded Fund (ETF) is not 100% guaranteed. He is uncertain regarding the regulator approving an ETF directly associated with digital assets.
Related reading: SEC Delays Bitcoin Spot ETF Proposals Again
Gorman on Approval of Bitcoin Spot ETF Applications
In an interview with Bloomberg TV, Gorman stated that the SEC and its Chair, Gary Gensler, have been very cautious in their approach to the regulation of digital assets. He believes that a Bitcoin Spot ETF still bears the risks associated with digital assets because the underlying asset operates outside the regulatory purview and is extremely volatile.
Notably, the SEC has declined multiple applications for a Bitcoin Spot ETF submitted by leading asset management firms in the United States, claiming that they do not possess measures to prevent market manipulation.
Related reading: Gensler: SEC Actively Assessing Multiple Bitcoin ETF Submissions
Gorman also noted that “terrorist groups like the Hamas” are using Bitcoin to fund their activities, which is also not helping the digital asset sector’s reputation and raises grave ethical and security concerns. The former SEC attorney also mentioned a letter from over a hundred lawmakers in both the Senate and the House to the Treasury and the National Security Council (NSC) discussing this concern.
Usage of the Hamas Group
The letter slammed Bitcoin and the digital asset sector for their usage by groups like Hamas to raise money, bypassing international sanctions. According to Gorman, the relatively lax regulations on commodity exchanges allow such groups to easily raise money as compared to securities exchanges, which are regulated more strictly.
When asked by the interviewer whether it was safe to buy Bitcoin under the ETF wrapper, Gorman said that the digital asset was designed to “get off the grid,” and industry players want to retain these properties. He said that investors need to think again about buying Bitcoin because terror groups are also involved in digital asset transactions.
Who is Tom Gorman?
Tom Gorman was the Senior Counsel in the Division of Enforcement at the SEC from 1978 to 1985 and joined Dorsey & Whitney as a partner thereafter. He worked at the SEC as a Special Trial Counsel, becoming a legal expert specializing in securities law.
Rumors of BlackRock ETF Approval
Interestingly, in the past few days, Bitcoin has skyrocketed to $34,000 amid rumors of BlackRock’s iShares Bitcoin Spot ETF getting closer to approval. The ETF was listed on the Depository Trust and Clearing Corporation’s list, carrying the ticker symbol IBTC. It was also assigned a CUSIP (Committee on Uniform Securities Identification Procedures) number, which is given to securities before listing.
Related reading:
