Better Markets, a nonpartisan nonprofit that advocates for stricter financial regulation, urges the Securities and Exchange Commission (SEC) to deny several pending applications for Bitcoin-traded exchange-traded funds (ETFs). A letter was submitted. , a product highly desired by encryption proponents.
In a letter, Better Markets co-founder and CEO Dennis M. He claims that it will unleash “something that is inherently unstable and socially useless.” A financial product for tens of millions of American investors and retirees. ”
Kelleher said the SEC's approval of the Spot Bitcoin ETF would set a dangerous precedent, making it harder for the SEC to win future legal battles and “giving countless retirement savers…a chance to diversify their portfolios.” Invested in cryptocurrencies in order to
Kelleher's troubles
in him letter, Kelleher raised several specific arguments against the approval of a Spot Bitcoin ETF. Regarding the fundamental merits of whether the Bitcoin market is mature enough to justify an ETF, Kelleher cited the potential for wash trading and Bitcoin's concentration in a small number of owners. denying the idea.
“The potential for fraud in the Spot Bitcoin market is so great that the exchange's rules cannot allow Spot Bitcoin ETPs to be listed and traded, and yet trade in a way that prevents and protects against fraud and manipulation. “The rules cannot be designed to meet the requirements of “investors and the public interest,'' Kelleher wrote.
Kelleher also appeared to argue that Bitcoin's volatility itself should disqualify it as a product offering to investors, saying, “This chart shows that other periods may be subject to wild fluctuations.” Spot Bitcoin ETPs pose risks to the public that are inconsistent with the obligation to protect investors and the public interest. ”
Kelleher also argued that regulated markets are too small to prevent manipulation and that oversight-sharing agreements will provide little deterrence, and concluded by calling the potential approval of a Spot Bitcoin ETF a “historic scale of regulation.” He concluded by calling the above error.
What is a better market?
Better Markets, a nonprofit, nonpartisan organization, advocates for stronger financial regulation on Wall Street. explained once It was published in the New York Times as “Occupy, Wall Street's suit-wearing cousin.''
The lobbying firm once came to FTX's attention and offered to donate $1 million to help the cryptocurrency company apply for CFTC approval.Kelleher yelled was denied It called the donation “direct quid pro quo” and urged the CFTC to deny the application.
This lobbying firm has been relentlessly critical of cryptocurrencies.new letters are the latest series of similar pleas Urge lawmakers and regulators to stop expanding regulatory acceptance of cryptocurrencies. The organization that earned Recommendation People including President Barack Obama, Sen. Elizabeth Warren, and current SEC Chairman Gary Gensler spent a total of $3 million in 2022, according to the report. annual report.
Disclaimer: The Block is an independent media outlet that delivers news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in: Other companies In the crypto space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block remains independently operated to provide objective, impactful, and timely information about the cryptocurrency industry. Current financial disclosure information is as follows:
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
