Bitcoin ETFs Face Hurdles As SEC Chair Sounds Alarm On Fraud And Manipulation
In a recent televised interview with Bloomberg, Securities and Exchange Legation (SEC) Chairman Gary Gensler expressed snooping well-nigh the so-called prevalence of fraud and manipulation in the cryptocurrency market.
Gensler’s remarks come as BlackRock and other investing giants have filed spot Bitcoin (BTC) Exchange-Traded Funds (ETF) applications, primarily based on surveillance sharing agreements with Coinbase. The SEC has not tried any spot Bitcoin ETFs, citing market manipulation and investor protection concerns.
Spot Bitcoin ETFs Encounter Potential Roadblock
source: google.com
In the interview, Gensler highlighted the combinations of variegated market functions on crypto trading platforms, which are prohibited in traditional financial exchanges for mismatch of interest and investor protection reasons. He moreover noted that while some crypto tokens come under securities laws, the trading platforms may not comply with time-tested protections versus fraud and manipulation. SEC’s Chair added: There’s a lot of noncompliance in this field. The platforms themselves, where trading is occurring of various crypto tokens, currently they’re not necessarily compliant with those time-tested protections versus fraud and manipulation.
Gensler’s comments suggest that the SEC is enlightened of these challenges and is working to write them. The organ has once taken whoopee versus several companies in the crypto industry, such as Binance and Coinbase, for violating securities laws and engaging in fraudulent activities. Gensler’s remarks suggest that the SEC will protract to take a tough stance on noncompliance in the crypto market.
The new surge of spot Bitcoin ETF applications, mainly based on surveillance sharing agreements with Coinbase and backed by investment giant BlackRock, may squatter opposition from Gensler due to these concerns. However, he noted that he would not make a uncontrived statement until the full five-member legation could review the applications.
source: google.com
The largest cryptocurrency in the market, BTC, is trading at $29,170, representing a minor subtract of 0.8% over the past 24 hours. Overall, Gensler’s comments suggest that the SEC may protract to take a cautious tideway to approving such products, expressly given the ongoing concerns over fraud in the nascent crypto industry. Furthermore, the SEC Chair reflects a broader skepticism well-nigh the crypto marketplace among regulators and policymakers, who have struggled to alimony up with the rapid pace of innovation in the industry. While the SEC has not yet decided on the recent wave of filings, Gensler’s skepticism suggests that the legation may take a cautious tideway to approving such products.