Fun

Senators pressure SEC’s Gensler not to approve any more crypto ETFs

News Feed - 2024-03-15 10:03:51

Tom Mitchelhill7 hours agoSenators pressure SEC’s Gensler not to approve any more crypto ETFsTwo Democratic senators argue that any further approvals would expose investors to risks including “fraud and manipulation.”12156 Total views35 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksTwo United States senators want Gary Gensler to pull the pin on any further crypto exchange-traded funds (ETFs), citing “enormous risks” to retail investors. 


In a March 11 letter, Democrat senators Jack Reed and Laphonza Butler claimed that allowing any further approvals of crypto ETFs by the Securities and Exchange Commission would see investors exposed to “thinly traded” markets rife with fraud and manipulation.


There are eight proposed spot Ether ETF applications awaiting approval by the SEC, and there have been hopes that other altcoins could eventually walk the same path.


“Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes,” read the letter.Reed and Butler urged further oversight of Bitcoin ETFs. Source:Alexander Grieve on X


Reed and Butler also urged the SEC not to allow the recent approval of spot Bitcoin (BTC) ETFs to become a precedent for further approvals.


They claimed that while the market for Bitcoin had displayed “serious weakness,” it was more established and well-scrutinized than the market for any other smaller cryptocurrencies.“However vulnerable Bitcoin may be to fraud and manipulation, markets for other cryptocurrencies are far more exposed to misconduct.”


The senators also urged the SEC to take “several specific steps” with the already launched Bitcoin ETF products, requesting that BTC ETF brokers and advisors be subjected to further regulatory scrutiny.


Alexander Grieve, the government relations lead at crypto venture capital firm Paradigm suggested the success of spot Bitcoin ETFs had been “clearly ruffling some feathers” on Capitol Hill.Source:Alexander Grieve on X


Related:Bitcoin price nails new $73.6K all-time high as ETFs eat away at supply


Crypto industry pundits say the letter is evidence of mounting political pressure on Gensler — which makes an Ether ETF approval in May seem less likely.


“The blockbuster success of the Bitcoin ETF is upsetting to high-ranking Dems. Buyer’s remorse. This is part of why we are pessimistic re spot Eth etf approval chances,” said Balchunas in a March 15 X post.


On March 11, Balchunas said the likelihood of a spot Ether ETF approval by May was sitting at just 35%. In January, Blachunas pegged the odds of approval at 70% but told Cointelegraph the SEC’s “radio silence” to prospective fund issuers — among several other factors — was a bad sign.


Both Butler and Reed have been involved in several pieces of legislation that seek to crack down on cryptocurrency in the United States. 


On Dec. 11 last year, Butler joined Senator Elizabeth Warren"s controversial Digital Asset Anti-Money Laundering Act bill as a co-sponsor. In July, Reed sponsored a bipartisan bill that would tighten Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations and sanctions requirements for decentralized finance (DeFi).


The Bitcoin Man, X Hall of Flame: China will intensify Bitcoin bull run, $1M by 2028# Bitcoin# Cryptocurrencies# Ethereum# SEC# ETF# United States# Regulation# Gary GenslerAdd reactionAdd reactionRead moreCoinbase fires back at senators asking SEC to halt crypto ETF approvalsBlackRock’s Bitcoin ETF sets daily volume record as BTC recoups slumpPro-crypto US voters turning to Trump, but don’t trust either party

News Feed

The Genesis of BCH Tokenization: Over 10,000 SLP Tokens Built on Bitcoin Cash
The Genesis of BCH Tokenization: Over 10,000 SLP Tokens Built on Bitcoin CashThis week Bitcoin Cash fans have been discussing the milestone of over 10,000 Simple Ledger Protocol (SL
10 signs you’ve been in the crypto industry too long
Yohan Yun10 hours ago10 signs you’ve been in the crypto industry too longDiscover the telltale signs of a true crypto veteran through market crashes, memecoins, and the highs and lows of digital gold.6133 Total views5
Biden Administration May Roll Back Some Crypto Regulations, Top Banking Regulator Warns
Biden Administration May Roll Back Some Crypto Regulations, Top Banking Regulator Warns The top U.S. banking regulator is concerned that the Biden administration
US Government Has Seized Cryptocurrencies Worth $1.2 Billion So Far This Year
US Government Has Seized Cryptocurrencies Worth $1.2 Billion So Far This Year The U.S. government has seized cryptocurrencies worth $1.2 billion so far this year
Texas Fixin’ to Start Strategic Bitcoin Reserve, Great News for $STARS Meme Coin Tracker Which Just Broke Through $15M in Presale
Este artículo también está disponible en español. Texas is moving forward with plans to introduce a strategic Bitcoin reserve. State Rep. Giovanni Capriglione announced y
Bitcoin Consolidates as Realized Profits Stay Low – No Signs Of Major Sell-Off Yet
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
ILCoin Launches With 5GB Blocks
ILCoin Launches With 5GB Blocks This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com
Ethereum could fall 30% after spot ETH ETFs launch — Crypto VC
Brayden Lindrea3 hours agoEthereum could fall 30% after spot ETH ETFs launch — Crypto VCMechanism Capital’s Andrew Kang believes an Ether ETF would provide limited upside for the asset unless Ethereum “develops a c
Biggest Movers: CRO Rebounds as CEO Kris Marszalek Admits ‘Trust Was Damaged’
Biggest Movers: CRO Rebounds as CEO Kris Marszalek Admits "Trust Was Damaged" On Nov. 14, cronos rebounded, as Crypto.com CEO Kris Marszalek held an “Ask me Anything” (AMA)
El Salvador Starts Mass Buying Bitcoin Ahead of BTC Becoming Legal Tender Tomorrow
El Salvador Starts Mass Buying Bitcoin Ahead of BTC Becoming Legal Tender Tomorrow Bitcoin will become legal tender in El Salvador on Tuesday, Sept. 7. The Salvadoran government ha
Binance to return to India after paying $2M fine for non-compliance: Report
Prashant Jha1 hour agoBinance to return to India after paying $2M fine for non-compliance: ReportBinance and nine foreign crypto exchanges were blocked in India over non-compliance with local AML regulations.353 Total vi
David Attlee57 minutes agoIRS extends comments period for new crypto tax rule to mid-NovemberThe proposed rules are supposed to come into effect in 2026, impacting sales and exchanges conducted in 2025.334 Total views3 T