Senator Elizabeth Warren lashes out at the SEC over its approval of Bitcoin ETFs, accusing it of being wrong in law and policy.
US Senator Elizabeth Warren has not hesitated to express her disagreement with the recent approval of several Bitcoin spot ETFs by the Securities and Exchange Commission (SEC). In a forceful message shared on her X account, Warren criticized the regulator’s decision, arguing that they are “wrong in law and wrong in policy.”
Warren took on X (formerly Twitter) to express her concerns in the following terms:
“The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision. If the SEC is going to let crypto burrow even deeper into our financial system, then it’s more urgent than ever that crypto follow basic anti-money laundering rules.”
The approval of these Bitcoin ETFs, presented by prominent asset managers such as BlackRock, Grayscale and Ark Invest, has generated controversy and has led the senator to highlight the urgent need for cryptocurrencies to comply with strict anti-money laundering regulations if they are going to have a broader presence in the financial system.
Responding to criticism, SEC Chairman Gary Gensler justified the decision, highlighting a change in circumstances following a court order related to Grayscale. Gensler stated that the Commission operates within the confines of the law and conforms to judicial interpretations, emphasizing that circumstances had evolved after the court order that led to a review of Grayscale’s application.
BlackRock CEO Larry Fink Would Be Interested in Ethereum ETF
The CEO of asset management giant BlackRock recently revealed his interest in an Ethereum-based ETF, amid growing interest in cryptocurrency markets. This announcement highlights the growing importance of Ethereum in the digital finance space, and Fink’s words, leading the world’s largest asset manager, carry significant weight suggesting a possible shift in investment strategies towards blockchain technologies.
Fink expressed his vision by stating the following:
“I see value in having an Ethereum ETF. These are just steps towards tokenization, and I truly believe that is where we are going.”
This endorsement may influence other reputable financial institutions to explore similar avenues, further strengthening the position of Ethereum as a leading cryptocurrency in the market.
Genesis Global Trading Resigns from New York Operations and Receives $8 Million Fine
Cryptocurrency firm Genesis Global Trading has reached an agreement with the New York Department of Financial Services (NYDFS), agreeing to cease operations in the state and pay an $8 million fine. The announcement, made on January 12, reveals that the company will also hand over its BitLicense, obtained in 2018. This agreement comes after an investigation that identified “significant flaws” in Genesis’ cybersecurity and anti-money laundering programs.
NYDFS Superintendent Adrienne Harris noted that Genesis Global Trading’s lack of a functional compliance program demonstrated “disregard for the Department’s regulatory requirements” and exposed both the company and its customers to potential threats.
CoinShares Moves Towards Acquisition of Valkyrie Funds, Consolidating Its Presence in the United States and the Bitcoin ETF Market
The European cryptocurrency investment firm, CoinShares, confirmed on January 12 its interest in acquiring Valkyrie Funds, its American competitor and issuer of the recently approved Bitcoin spot ETF. The acquisition will strengthen CoinShares’ efforts to expand in the US market.
Although the terms of the agreement were not disclosed, a CoinShares spokesperson highlighted that “It was only logical that we expand to the United States and join the race for the Bitcoin Spot ETF.”
By Leonardo Perez
