False Reports of SEC Approval for BlackRock BTC ETF
Yesterday, there were reports circulating that the US Securities and Exchange Commission (SEC) had approved BlackRock’s application to launch a spot BTC ETF in America. This news caused a surge in the price of Bitcoin and excitement within the crypto sector. However, it was later revealed that these reports were false. The SEC issued a warning to Twitter users, urging them to only trust verified sources and not believe everything they read online.
US Attorney Criticizes the SEC
John E. Deaton, a US attorney representing thousands of XRP investors in their lawsuit against the SEC, disagreed with the regulator’s cautionary statement. He argued that people should trust independent judges who oversee the SEC rather than the agency itself. Deaton referenced court opinions that have deemed the SEC’s actions inconsistent and described the agency as “arbitrary and capricious.” He highlighted that judges have criticized the SEC’s lawyers and accused them of lacking faithful allegiance to the law.
SEC’s Legal Battles with Crypto Entities
The SEC has been involved in several legal confrontations with cryptocurrency companies, and it has faced losses in many of these cases. Ripple secured two court victories against the SEC, while Grayscale successfully challenged the Commission’s rejection of its Bitcoin Trust conversion into a spot ETF. In addition, the SEC filed lawsuits against major exchanges Binance and Coinbase for alleged violations of securities laws. These legal battles highlight the ongoing regulatory challenges faced by crypto firms.
Hot Take: The SEC’s Controversial Track Record
The recent incident surrounding false reports of BlackRock’s BTC ETF approval highlights the challenges faced by both regulators and crypto investors. The SEC’s caution against unverified sources is a reminder to exercise skepticism when consuming news in the crypto space. However, criticisms from legal experts like John E. Deaton highlight the need for consistent and transparent regulatory actions. The SEC’s track record of losses in legal battles with crypto entities raises questions about its effectiveness and approach. As the crypto industry continues to evolve, it remains to be seen how regulators will adapt to this rapidly changing landscape.
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