The Securities and Exchange Commission (SEC) is under pressure from a major financial regulatory body regarding plans for Bitcoin-based ETFs.
A comment letter was fired when Better Markets, a non-partisan organization pushing for stricter regulations lashed out at the SEC to deny these applications.
Dennis M. Kelleher, president of Better Markets, sets out these stark concerns in the letter. He paints a picture of a “speculative, volatile and socially useless” market for Bitcoin wherein such financial products have no place.
Kelleher notes that a green signal for Bitcoin ETFs might send these dangers to “tens of millions” of American investors and retirees.
He argues that the Bitcoin market is flawed by being still immature, and full of problems such as wash trading and concentrated ownership.
Kelleher, with figures resembling President Obama and Senator Warren, argues that approving these ETFs would constitute “a grave threat” and could be considered an error of regulation potentially having long standing consequences.
This is not the first rodeo of Better Markets. The organisation is a champion of stringent financial regulations and has been consistently against the burgeoning cryptocurrency industry’s regulatory ambitions.
Most importantly, they refused a $1 million donation from FTX despite the fact that their principles were unwavering.
In parallel to the cryptocurrency integration into mainstream finance, debate continues.
On one hand, proponents see ETFs as a path leading to broader adoption; whereas critics like Better Markets raise concerns about the safety of investors and pose systemic risks. The SEC is now placed in a crucial position, right at the centre of this high-risk tug-of-war.
