Senate Grills SEC Commissioner on Bitcoin ETF Fraud Concerns

As an experienced securities analyst, I share Commissioner Crenshaw’s concerns regarding the approval of Bitcoin exchange-traded products (ETPs) or ETFs. Having closely followed the cryptocurrency markets and the regulatory landscape for years, it is clear that there are significant risks associated with these investments.

As a crypto investor, I’ve heard Commissioner Caroline Crenshaw of the SEC express her regrets before the senators last Thursday. She shared that she couldn’t grant approval for Bitcoin ETPs (Exchange-Traded Products) earlier this year due to the rampant fraudulent activities in the cryptocurrency markets that needed addressing first.

At a Senate Banking Committee hearing for confirming new senators, Crenshaw and other nominees showcased their past records for examination. Despite crypto-related issues being of significant importance, these matters received limited focus during the questioning of Crenshaw regarding her upcoming SEC term.

Following a court defeat against Grayscale in January, the Securities and Exchange Commission (SEC) modified its viewpoint regarding bitcoin spot exchange-traded funds (ETFs). Commissioner Crenshaw remains opposed, contending that these investment vehicles are exchange-traded products (ETPs) rather than ETFs, which fall under separate regulatory frameworks.

“The approval of Bitcoin (BTC) products by the agency could potentially stray from our mission to protect investors.”

On Thursdays, she firmly expressed her intention to go against it due to the rampant fraud in the international spot markets and their lack of transparency, as she pondered over what was best for the general public.

In January, Crenshaw expressed concern over an potential influx of questionable Ethereum ether products into the market, which could negatively impact Americans’ retirement savings due to fraudulent activities in the bitcoin spot markets. Her team is now investigating similar trading instruments for Ethereum’s ether.

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2024-07-11 23:48