Senator Elizabeth Warren: SEC was wrong in its spot Bitcoin ETF decision

Senator Elizabeth Warren asserted connected Jan. 11 that U.S. securities regulators incorrectly decided to approve spot Bitcoin ETFs.

Warren wrote successful a station connected X:

“The [Securities and Exchange Commission] is incorrect connected the instrumentality and incorrect connected the argumentation with respect to the Bitcoin ETF decision. If the SEC is going to fto crypto burrow adjacent deeper into our fiscal system, past it’s much urgent than ever that crypto travel basal anti-money laundering rules.”

Warren’s precise complaints are unknown, and whether she volition explicate those issues successful afloat successful a aboriginal missive to the SEC is unclear.

However, the last portion of her connection appears to advocator for anti-money laundering rules that would widen beyond exchange-traded funds specifically. Warren has been advancing authorities called the Digital Asset Anti-Money Laundering Act since its reintroduction successful July 2023. The contents of that measure would use to the cryptocurrency manufacture successful general.

Some members of the SEC look to beryllium sympathetic to Warren’s warfare connected crypto crime. Despite voting to o.k. spot Bitcoin ETFs, SEC seat Gary Gensler noted crypto abuses, including transgression and coercion successful his approval statement and urged users to beryllium “cautious astir the myriad risks” astir Bitcoin.

Dissenting SEC commissioner Caroline A. Crenshaw much harshly stated that Bitcoin markets are “marred by fraud and manipulation” and deficiency of oversight.

Law does not necessitate SEC to o.k. oregon cull ETFs

Warren’s disapproval of ETFs received monolithic backlash connected societal media. Many commenters suggested that a ruling concerning Grayscale‘s ETF exertion yet led the SEC to o.k. assorted spot Bitcoin ETFs. That ruling initially seems to antagonistic Warren’s proposition that the SEC was “wrong connected the law.”

However, the result of the Grayscale lawsuit did not necessitate the SEC to o.k. immoderate fund. Gensler acknowledged that the result of Grayscale’s ineligible lawsuit was 1 origin that made support of spot Bitcoin ETFs the “most sustainable way forward” but did not authorities that the SEC was required to contented approvals.

Grayscale’s ruling required the SEC to reappraisal its spot Bitcoin ETF application. The tribunal besides recovered that the SEC had failed to explicate its reasoning for rejecting the exertion successful airy of erstwhile Bitcoin futures ETF approvals.

The station Senator Elizabeth Warren: SEC was incorrect successful its spot Bitcoin ETF decision appeared archetypal connected CryptoSlate.