9 months ago
SEC Commissioner Caroline A. Crenshaw voices her dissent against the commission’s support of spot bitcoin ETFs, highlighting the risks of marketplace manipulation, the attraction of bitcoin ownership, and the inadequacy of existent regulatory measures successful safeguarding capitalist interests.
SEC Commissioner Critiques Spot Bitcoin ETF Approval
Following the SEC’s spot bitcoin ETF wide approvals, Commissioner Caroline A. Crenshaw has released a missive expressing her dissent, raising superior concerns astir capitalist extortion and marketplace integrity.
Crenshaw’s dissent follows the SEC’s determination to o.k. regularisation changes allowing the listing and trading of bitcoin-based Exchange Traded Products (ETPs) connected nationalist securities exchanges. In her statement, she argues that these actions are inconsistent with the SEC’s mandate to support investors and the nationalist interest.
The Commissioner’s superior interest revolves astir the underlying planetary spot markets for bitcoin, which she says are marred by fraud and manipulation. She points to examples specified arsenic the alleged bitcoin terms manipulation by the erstwhile CEO of FTX to support its terms nether $20,000 for his benefit. In somewhat of a caput scratcher, Crenshaw besides cites the caller hacking of an SEC societal media relationship and consequent false announcement of spot bitcoin ETFs, which led to volatile bitcoin prices, arsenic indicative of imaginable marketplace manipulation. After the mendacious announcement had been revealed arsenic a hack, immoderate members of the crypto assemblage had adjacent joked that the SEC mightiness usage it arsenic grounds to withhold approval.
“on 2nd thoughts, bitcoin spot marketplace is excessively easy manipulated (by us), truthful we’re denying the ETF”
— nic 
carter (@nic__carter) January 9, 2024
According to Crenshaw, attraction of bitcoin ownership is besides a concern:
Concentration of ownership among spot bitcoin holders besides leaves bitcoin investors (and present spot bitcoin ETP investors) susceptible to the whims and trading practices of a few. Analysis shows that mining and holdings of bitcoin are highly concentrated.
She argues that the spot bitcoin markets’ susceptibility to manipulation and the deficiency of capable oversight marque it hard to accidental that the approved regularisation changes are designed to support investors effectively.
In her critique of the caller Grayscale vs. SEC case, Crenshaw notes that the correlation investigation utilized to warrant the support of spot bitcoin ETPs is inadequate. She draws attraction to the important differences successful capitalist extortion betwixt futures and spot bitcoin ETPs, likening the second to an unregulated, planetary free-for-all, with small recourse for investors successful cases of fraud oregon manipulation.
She criticizes the instauration of a caller regulatory modular without wide guidelines and questions the reliability of the information utilized successful the SEC’s correlation analysis. In a broader critique of the cryptocurrency ecosystem, Crenshaw questions the inclination to recreate the existing fiscal strategy with little regularisation and much risk, diverging from the archetypal ideals of Bitcoin arsenic a peer-to-peer, censorship-resistant integer currency. She fears that linking Bitcoin excessively intimately to the accepted fiscal strategy whitethorn not service the interests of investors but alternatively inflate the prices of these concern products.
Are you receptive to immoderate of Commissioner Crenshaw’s concerns? Share your thoughts and opinions astir this taxable successful the comments conception below.
English (US) 