The SEC Should Reject Spot Bitcoin ETF Applications, Says Better Markets
Nonprofit organization Better Markets has urged the Securities and Exchange Commission (SEC) to reject recent spot bitcoin exchange-traded fund (ETF) applications due to concerns about potential investor harm. The crypto industry has experienced significant losses, enforcement actions, bankruptcies, lawsuits, and criminal prosecutions, making it imperative for the SEC to carefully evaluate the latest wave of Bitcoin ETF filings. Better Markets filed two letters commenting on eight specific applications, arguing that the SEC should remain consistent with its previous disapproval of such filings. Additionally, firms seeking a spot bitcoin ETF have named Coinbase as a surveillance sharing partner to address regulator concerns about market manipulation. However, Better Markets highlighted that relying on Coinbase for market surveillance would have little value in detecting or deterring manipulation, as only a small portion of global spot bitcoin trading occurs on the platform.
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