“SEC Made a Mistake in Approving Bitcoin ETF,” US Senator Says

Senator Elizabeth Warren has criticized the US Securities and Exchange Commission’s (SEC) decision to approve Bitcoin ETFs. Warren, known for her strong positions on financial regulation, criticized the SEC for both the legality and the policies it used in approving the funds.

In a post on Twitter (X), the senator argued that deepening Bitcoin’s integration into the US financial system will require stricter enforcement of anti-money laundering rules. She emphasized the urgency of this approach in a scenario where cryptocurrency is becoming increasingly relevant.

While the specific details of Warren’s criticism are not entirely clear, the senator has been an active voice in the debate over cryptocurrency regulation. She has promoted the Anti-Money Laundering of Digital Assets Act, which proposes comprehensive regulations for the sector.

“The SEC is wrong in law and policy regarding the Bitcoin ETF decision. If the SEC allows cryptocurrency to penetrate even deeper into our financial system, then it is more urgent than ever that cryptocurrencies follow the basic rules against money laundering.”

SEC Approves Bitcoin ETF, But Says It Won’t Endorse Bitcoin

Some SEC members appear to share Warren’s concerns. Despite voting in favor of approving spot Bitcoin ETFs, SEC Chairman Gary Gensler acknowledged the existence of abuses in the sector, including criminal and terrorist activities, and warned of the risks associated with Bitcoin.

Caroline A. Crenshaw, a dissenting SEC commissioner, was even more direct, pointing to fraud and manipulation in the Bitcoin markets, as well as a general lack of oversight.

The controversy surrounding the SEC’s decision was widely discussed on social media, with many suggesting that the SEC’s approach to ETFs did not clearly align with Warren’s legal interpretation.

The Grayscale case, which did not force the SEC to approve a fund but did have to review a spot Bitcoin ETF application, complicated the discussion.

Gensler indicated that the ruling in the Grayscale case was a factor in considering the approval of Bitcoin ETFs as a sustainable route, although it did not mean a legal obligation for the SEC.

The debate highlights the ongoing tension between innovation in the cryptocurrency sector and regulators’ attempt to oversee the financial system as a whole.

Source: Live Coins