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

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 wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision. If the SEC is going to let crypto burrow even deeper into our financial system, then it’s more urgent than ever that crypto follow basic anti-money laundering rules.”

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.

Nevertheless, the ultimate a part of her assertion seems to advocate for anti-money laundering guidelines that might 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 trade in normal.

Some members of the SEC look 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 about the myriad risks” round Bitcoin.

Dissenting SEC commissioner Caroline A. Crenshaw extra harshly said that Bitcoin markets are “marred by fraud and manipulation” and lack of oversight.

Legislation doesn’t require SEC to approve or reject ETFs

Warren’s criticism of ETFs acquired large backlash on social media. Many commenters steered {that a} ruling regarding Grayscale‘s ETF utility in the end led the SEC to approve numerous spot Bitcoin ETFs. That ruling initially appears to counter Warren’s suggestion that the SEC was “wrong on the law.”

Nevertheless, the end result of the Grayscale case didn’t require the SEC to approve any fund. Gensler acknowledged that the end result of Grayscale’s authorized case was one issue that made approval of spot Bitcoin ETFs the “most sustainable path forward” however didn’t state that the SEC was required to challenge approvals.

Grayscale’s ruling required the SEC to overview its spot Bitcoin ETF utility. The court docket additionally discovered that the SEC had failed to elucidate its reasoning for rejecting the appliance in gentle 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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