Securities and Exchange Commission (SEC) Chair Gary Gensler revealed on Thursday that the agency is reconsidering applications for a spot bitcoin ETF, taking recent court rulings into account. Despite years of denials for similar applications, a court order requiring a review of Grayscale Investments' bid might be influencing the SEC's stance. Gensler noted that the agency is now evaluating over a dozen applications, including those from major players like BlackRock and Fidelity, emphasizing a "new look" based on recent court decisions in the District of Columbia.

In August, the U.S. Court of Appeals for the D.C. Circuit instructed the SEC to reevaluate Grayscale's spot bitcoin ETF application, highlighting the agency's differential treatment between spot bitcoin ETFs and similar funds based on futures contracts. This court decision is prompting a fresh assessment of previous denials, signaling a potential shift in the SEC's approach to cryptocurrency investment products. Gensler reiterated his concerns about noncompliance within the crypto industry, emphasizing the prevalence of fraud and bad actors. He stressed the need for adherence to existing securities laws and other regulations, including anti-money laundering measures, highlighting the broader regulatory challenges facing the crypto space. As the SEC takes a "new look," the crypto industry awaits potential developments in the approval of spot bitcoin ETFs.