Senator Elizabeth Warren asserted on Jan. 11 that U.S. securities regulators incorrectly determined to approve spot Bitcoin ETFs.
Warren wrote in a publish on X:
“The [Securities and Exchange Commission] is flawed on the regulation and flawed on the coverage with respect to the Bitcoin ETF choice. If the SEC goes to let crypto burrow even deeper into our monetary system, then it’s extra pressing than ever that crypto comply with fundamental anti-money laundering guidelines.”
Warren’s exact complaints are unknown, and whether or not she’s going to clarify these points in full in a future letter to the SEC is unclear.
Nevertheless, the ultimate a part of her assertion seems to advocate for anti-money laundering guidelines that will lengthen past exchange-traded funds particularly. Warren has been advancing laws known as the Digital Asset Anti-Cash Laundering Act since its reintroduction in July 2023. The contents of that invoice would apply to the cryptocurrency business usually.
Some members of the SEC seem like sympathetic to Warren’s battle on crypto crime. Regardless of voting to approve spot Bitcoin ETFs, SEC chair Gary Gensler famous crypto abuses, together with crime and terrorism in his approval assertion and urged customers to be “cautious concerning the myriad dangers” round Bitcoin.
Dissenting SEC commissioner Caroline A. Crenshaw extra harshly acknowledged that Bitcoin markets are “marred by fraud and manipulation” and lack of oversight.
Regulation doesn’t require SEC to approve or reject ETFs
Warren’s criticism of ETFs acquired large backlash on social media. Many commenters prompt {that a} ruling regarding Grayscale‘s ETF software in the end led the SEC to approve varied spot Bitcoin ETFs. That ruling initially appears to counter Warren’s suggestion that the SEC was “flawed on the regulation.”
Nevertheless, the result of the Grayscale case didn’t require the SEC to approve any fund. Gensler acknowledged that the result of Grayscale’s authorized case was one issue that made approval of spot Bitcoin ETFs the “most sustainable path ahead” however didn’t state that the SEC was required to situation approvals.
Grayscale’s ruling required the SEC to evaluate its spot Bitcoin ETF software. The court docket additionally discovered that the SEC had failed to clarify its reasoning for rejecting the applying in gentle of earlier Bitcoin futures ETF approvals.
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