SEC Commissioner Critiques Approval of Spot Bitcoin ETFs
In response to the SEC’s approval of spot bitcoin ETFs, Commissioner Caroline A. Crenshaw has voiced her dissent. She expresses serious concerns about investor protection and market integrity.
Crenshaw argues that the approval of rule changes allowing the listing and trading of bitcoin-based ETPs on national securities exchanges contradicts the SEC’s mandate to safeguard investors and the public interest.
Concerns About Market Manipulation and Concentration of Ownership
One of Crenshaw’s main concerns is the fraudulent and manipulative nature of the underlying global spot markets for bitcoin. She cites examples such as the alleged bitcoin price manipulation by the former CEO of FTX. She also mentions the hacking of an SEC social media account that led to false announcements of spot bitcoin ETFs, causing volatile bitcoin prices.
Additionally, Crenshaw highlights the concentration of bitcoin ownership, which leaves investors vulnerable to the trading practices of a few. She emphasizes that mining and holdings of bitcoin are highly concentrated.
Inadequacy of Regulatory Measures and Correlation Analysis
Crenshaw argues that the lack of oversight and susceptibility to manipulation in spot bitcoin markets make it difficult to believe that the approved rule changes effectively protect investors.
In her critique of the Grayscale vs. SEC case, Crenshaw questions the reliability of the data used in the SEC’s correlation analysis. She believes that spot bitcoin ETPs lack adequate investor protection compared to futures and warns against recreating the existing financial system with less regulation and more risk.
Hot Take: Commissioner Crenshaw Advocates for Stronger Investor Protection
SEC Commissioner Caroline A. Crenshaw expresses her dissent against the SEC’s approval of spot bitcoin ETFs. She raises concerns about market manipulation, concentration of ownership, and the adequacy of regulatory measures to protect investors. Crenshaw questions the reliability of the data used in correlation analysis and warns against recreating the existing financial system with less regulation and more risk. She believes it is crucial to prioritize investor protection and safeguard the integrity of the market.
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