Senator Elizabeth Warren: SEC was unsuitable in its spot Bitcoin ETF determination

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 unsuitable on the legislation and unsuitable on the coverage with respect to the Bitcoin ETF determination. If the SEC goes to let crypto burrow even deeper into our monetary system, then it’s extra pressing than ever that crypto observe fundamental anti-money laundering guidelines.”

Warren’s exact complaints are unknown, and whether or not she is going to clarify these points in full in a future letter to the SEC is unclear.

Nonetheless, the ultimate a part of her assertion seems to advocate for anti-money laundering guidelines that may prolong past exchange-traded funds particularly. Warren has been advancing laws referred to 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 on the whole.

Some members of the SEC seem like sympathetic to Warren’s struggle 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 statement and urged customers to be “cautious in regards to 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 obtained large backlash on social media. Many commenters urged {that a} ruling regarding Grayscale‘s ETF software finally led the SEC to approve numerous spot Bitcoin ETFs. That ruling initially appears to counter Warren’s suggestion that the SEC was “unsuitable on the legislation.”

Nonetheless, 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 subject approvals.

Grayscale’s ruling required the SEC to evaluation its spot Bitcoin ETF software. The courtroom additionally discovered that the SEC had failed to elucidate its reasoning for rejecting the applying in mild of earlier Bitcoin futures ETF approvals.

The publish Senator Elizabeth Warren: SEC was wrong in its spot Bitcoin ETF decision appeared first on CryptoSlate.

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