Better Markets Urges SEC to Reject Bitcoin ETF Applications

• Non-profit organization Better Markets has urged the Securities and Exchange Commission (SEC) to reject recent spot bitcoin ETF applications due to concerns about potential investor losses.
• The organization, led by Stephen Hall, cited current issues faced by the crypto industry and its links to crime as reasons for their stance.
• The SEC has yet to approve a spot Bitcoin ETF, and has previously rejected such applications, with Chairman Gary Gensler expressing concerns about fraud and manipulation.

Better Markets, a non-profit organization, has called on the SEC to reject recent applications for spot bitcoin ETFs due to potential risks to investors. The group, headed by Stephen Hall, points to the current challenges in the crypto industry and its ties to criminal activities as justification for their position. The SEC has not yet approved a spot Bitcoin ETF and has previously turned down such requests, with Chairman Gary Gensler voicing worries about fraud and manipulation.

Better Markets Advocates for Investor Protection in Crypto Industry

Non-profit organization Better Markets is urging the Securities and Exchange Commission (SEC) to reject recent applications for spot Bitcoin exchange-traded funds (ETFs). The call is part of the organization’s efforts to protect investors from potential losses in the volatile crypto market.

Stephen Hall, the organization’s legal director and a securities expert, highlighted the crypto industry’s recent loss of $2 trillion, numerous legal cases, and criminal prosecutions. He emphasized that the real winners in the crypto market are criminals associated with ransomware, money laundering, and various illegal activities. He urged the SEC to consider these factors when reviewing this month’s Bitcoin ETF applications.

Spot Bitcoin ETF Applications Under Scrutiny

Better Markets has specifically published two comment letters regarding the eight applications for spot Bitcoin ETFs. Recently, there has been an increase in such applications, following BlackRock’s initial application.

The SEC has not yet approved a spot Bitcoin ETF and has rejected such applications in past attempts. Chairman Gary Gensler has added his concerns about fraud and manipulation to the discussion.

Concerns About Crypto Market Manipulation

The SEC’s hesitation to approve a spot Bitcoin ETF is largely due to concerns about potential manipulation in the crypto market. The lack of regulation and oversight in the crypto industry makes it a fertile ground for fraudulent activities, which poses significant risks to investors.

Conclusion

In conclusion, Better Markets’ call for the rejection of spot Bitcoin ETF applications highlights the ongoing concerns about the crypto industry’s vulnerability to crime and manipulation. The SEC’s cautious approach reflects these concerns, emphasizing the need for greater regulation and oversight in the crypto market to protect investors.