Better Markets, a financial nonprofit organization, has lashed out against approving a spot ether ETF product, stating that it would endanger the broader financial system. In a supplemental comment letter sent to the SEC, the organization states that approving these spot ether ETPs would “interweave the crypto industry with traditional finance,” aggravating systemic risks introduced […]
Bitcoin News
Financial Nonprofit Better Markets: Approving a Spot Ether ETF Would Threaten ‘the Broader Financial System’
Better Markets, a financial nonprofit organization, has lashed out against approving a spot ether ETF product, stating that it would endanger the broader financial system. In a supplemental comment letter sent to the SEC, the organization states that approving these spot ether ETPs would “interweave the crypto industry with traditional finance,” aggravating systemic risks introduced […]
Bitcoin News
JPMorgan Anticipates SEC Approving Spot Ethereum ETFs After Litigation Process
Global investment bank JPMorgan anticipates that the U.S. Securities and Exchange Commission (SEC) will eventually approve spot ether exchange-traded funds (ETFs). However, the firm pegs the chance of approval in May at 50%, foreseeing a potential litigation process if an ether ETF application is rejected at that time. JPMorgan on Potential SEC Approval of Spot […]
Bitcoin News
US Senators Push SEC to Stop Approving Spot Crypto ETFs — Say Other Crypto Markets Risker Than Bitcoin
Two U.S. senators have urged U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler to refrain from approving additional crypto exchange-traded fund (ETF) applications. The lawmakers cautioned: “However vulnerable bitcoin may be to fraud and manipulation, markets for other cryptocurrencies are far more exposed to misconduct.” Lawmakers Say SEC Should Not Approve Spot Crypto ETFs […]
Bitcoin News
Senator Elizabeth Warren Says SEC Is Wrong for Approving Spot Bitcoin ETFs
U.S. Senator Elizabeth Warren has slammed the U.S. Securities and Exchange Commission (SEC) for approving spot bitcoin exchange-traded funds (ETFs). She stressed that the securities regulator is “wrong on the law and wrong on the policy with respect to the bitcoin ETF decision.”
Senator Elizabeth Warren Unhappy With SEC’s Spot Bitcoin ETF Approvals
The U.S. Securities and Exchange Commission (SEC)’s recent approval of 11 spot bitcoin exchange-traded funds (ETFs) drew immediate criticism from U.S. Senator Elizabeth Warren (D-MA), who has long been a vocal skeptic of bitcoin and other cryptocurrencies. The senator wrote on social media platform X Thursday:
The SEC 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,” she stressed.
Several “community notes” were placed on Warren’s tweet. “There are already robust laws to prevent crypto money laundering. U.S. agencies, such as FinCEN, SEC, [and] CFTC, enforce anti-money laundering (AML) compliance, sanctions adherence, and the txn monitoring. States like New York (Bitlicense) also contribute to AML efforts.” Another community note states: “The SEC acted in accordance to new ‘circumstances’ brought up by the Judge in Grayscale Investments, LLC v. SEC. This is admitted by SEC Chair Gary Gensler.”
Warren is a vocal critic of cryptocurrency. In October last year, the senator and over 100 legislators penned a bipartisan note to Biden administration officials, raising concerns over Hamas evading U.S. sanctions and securing millions through crypto assets.
The Massachusetts senator has introduced the Digital Asset Anti-Money Laundering Act to “close loopholes in current law and bring cryptocurrency companies into greater compliance with the anti-money laundering and countering the financing of terrorism (AMF/CFT) frameworks that govern much of the financial system.” Noting that Warren’s bill is effectively “a crypto ban,” the Chamber of Digital Commerce has set up a petition to stop the proposal.
Moreover, despite their shared skepticism towards crypto, Senator Warren and JPMorgan CEO Jamie Dimon find themselves on opposite sides of the spot bitcoin ETF debate. While Dimon has insisted that bitcoin has no value and its primary use cases are illicit activities, JPMorgan is serving as a lead authorized participant for Blackrock’s spot bitcoin ETF.
What do you think about the statements by Senator Elizabeth Warren about spot bitcoin ETF approvals? Let us know in the comments section below.
SEC Chair Gary Gensler Was the Deciding Vote Approving Spot Bitcoin ETFs
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, cast the deciding vote approving 11 spot bitcoin exchange-traded funds (ETFs) in a landmark decision on Wednesday. Before the approvals, the securities regulator held a vote on spot bitcoin ETFs, with two commissioners favoring and two opposing. Gensler’s vote tipped the scales in favor of approval.
Gensler’s Vote Tips the Scales in Favor of Spot Bitcoin ETF Approvals
Before approving spot bitcoin exchange-traded funds (ETFs) on Wednesday, the U.S. Securities and Exchange Commission (SEC) held final votes on the rule changes proposed by NYSE Arca, Nasdaq, and Cboe BZX to list and trade the funds.
Two SEC commissioners, Hester Peirce and Mark Uyeda, voted for approval, while Caroline Crenshaw and Jaime Lizárraga opposed it. The vote split at 2-2, with Gary Gensler casting the deciding vote in favor of approving spot bitcoin ETFs. Bloomberg analyst James Seyffart commented on Thursday:
For those that missed this detail yesterday in the frenzy. Gensler was the deciding vote to get the bitcoin ETF over the line with a 3-2 vote.
The SEC approved 11 spot bitcoin ETFs for listing and trading on NYSE Arca, Nasdaq, and Cboe BZX exchanges following their voting session. The funds started trading Thursday morning.
The approved spot bitcoin ETFs are ARK 21shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC), Invesco Galaxy Bitcoin ETF (BTCO), Vaneck Bitcoin Trust (HODL), Wisdomtree Bitcoin Fund (BTCW), Bitwise Bitcoin Trust (BITB), Ishares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BRRR), Hashdex Bitcoin ETF (DEFI), and Grayscale Bitcoin Trust (GBTC).
Despite voting in favor of approving spot bitcoin ETFs, Gensler issued a statement afterward clarifying that the approval doesn’t mean the Commission has approved or endorsed bitcoin. Gensler continued to warn investors of the risks of investing in crypto assets. He still views most crypto tokens as securities.
What do you think about SEC Chairman Gary Gensler being the deciding vote on the approval of 11 spot bitcoin ETFs? Let us know in the comments section below.
Report: SEC on Cusp of Approving Ethereum Futures Amidst Crypto Market Rollercoaster
The U.S. Securities and Exchange Commission (SEC) is said to be on the verge of greenlighting futures products tied to ethereum (ETH), as per a Bloomberg report. One insider privy to the development indicated that a handful could secure approval come October.
Unnamed Sources Reveal SEC May Soon Greenlight Ethereum Futures Products
In recent weeks, a consortium of firms, including Valkyrie, Roundhill, Proshares, Grayscale, Vaneck, Volatility Shares, and Bitwise, have submitted applications to roll out ethereum (ETH)-based futures products. A Thursday report by Bloomberg’s Vildana Hajric and Allyson Versprille reveals the SEC’s likely inclination towards not obstructing ETH-based futures. This intel comes from individuals “familiar with the matter,” preferring anonymity.
While these insiders remained tight-lipped about potential approvals, there’s buzzing speculation that green lights might emerge in October. This anticipated move has been warmly received by ETH aficionados, who see it as a boon for the crypto world’s runner-up. Ethereum advocate Adam Cochran opined that the implications of such news on ETH futures ETFs could be “bigger than first meets the eye.”
Cochran argued, “The SEC cannot really both simultaneously argue that ETH is some new intrinsic ‘crypto asset security’ that is unregistered, and approve an ETH Futures ETF. You couldn’t have a futures ETF made out of an unregistered security. You must accept the state that it is a commodity or a currency for this to be the case, and revert to only attacking the transactional matter of it under Howey.”
However, Thursday wasn’t all rosy for ETH. The cryptocurrency took a hit after Bitcoin’s abrupt plunge below the K mark. ETH diminished by 6% vis-à-vis the U.S. dollar in 24 hours and 9% over the week. After touching a Thursday low of ,576 per token, Friday witnessed a slight bounce-back, with ETH trading at ,681 each. Currently, ETH’s footprint in the crypto sphere, valued just north of trillion, stands at 18.3%, translating to a market cap nearing 1 billion.
What do you think about the sources that say the SEC may approve ethereum-based futures products? Share your thoughts and opinions about this subject in the comments section below.
How the SEC “dug into a hole” by not approving a Bitcoin ETF
Pro crypto Securities and Exchange Commission (SEC) Commissioner Hester Pierce talked about the U.S. current regulatory landscape on Bitcoin’s Association YouTube channel.
The Commissioner revealed that some progress has been made to change the approach the regular have on digital assets.
Pierce has chosen to focus on the innovations brought by digital assets and cryptocurrencies and their benefits to consumers. Her colleagues at the regulatory body have taken a largely opposite stance.
The Commissioner highlighted the importance that flexibility and the ability to a point of view quickly have in this field. The Commissioner has repeatedly called for approval of a Bitcoin-based Exchange Traded Fund (ETF). Her requests have been ignored by the regulator. Pierce said:
What I would urge my fellow regulators and people at the Fed to think is to think not only to have the reaction of looking at where the negatives are but to really look for the positives (…). I would hope they won’t ruled out the positive things that could happen in the purely private sector as well (…). Don’t view this (crypto regulation) as a competition between the private and public sector.
Pierce asked his fellow commissioners to take a “more optimistic” stance. A regulator that becomes an obstacle to innovation, in the Commissioner’s view, will take lose-lose actions for all parties.
For Pierce, the crypto industry is in its infancy. Eventually, she believes that its use cases may be integrated into various areas to remove “single points of failure” and increase the “resilience” of the financial system. The Commissioner invited to see “the whole picture”.
The SEC has rejected the launch of a Bitcoin ETF. However, Pierce believes that the interest the cryptocurrency has recently received is changing how her fellow regulators view the asset. The approval of Gary Gensler as chairman of the SEC, she said, could bring a different vision to the institution.
The commissioner hopes Gensler will be open to the idea of creating a “safe harbor” program within the U.S. This program would provide more clarity in the industry and facilities a conversation between the U.S. regulators.
A “Safe Harbor” could be a more “productive” alternative than no action which is “what has been done so far”. On the possibility of a Bitcoin ETF being approved in the U.S., Pierce said:
(Institucions) want access to crypto trough a regulated market. It makes sense for us to consider how to do that (…). We’ve dug ourselves into a little bit of a hole. A lot of people are looking for a way to access the asset class. We waited a long time to approved this kind of product.
The Commissioner said she is not biased to a particulate network; her main interest is to provide clarity “early”.
Canada’s ETF hits billion
Meanwhile, Senior ETF analyst for Bloomberg, Eric Balchunas, reported on the progress of Canada’s Bitcoin ETF. Approved early March, the financial product in that country has managed to break billion. The expert said:
the Canada ETF market is 1/27th the size of US, so proportionally speaking this is like a US ETF hitting b within a month, which hasn’t ever even come close to happening.
French Regulators are Closer to Approving First Group of Cryptocurrency Issuers
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