Senator Warren: SEC is “mistaken on the law” approving bitcoin ETFs
After the inaugural day of trading for bitcoin exchange-traded funds (ETFs) concluded, Senator Elizabeth Warren, D-Mass., took to express her disagreement with the US Securities and Exchange Commission (SEC).
In a statement, Warren said, “The SEC is mistaken on the law and misguided on the policy when it comes to the bitcoin ETF decision.”
This remark follows the SEC’s momentous choice to greenlight 11 new spot bitcoin ETFs, which amassed over $4 billion in trading volume on their first day.
Warren utilized the SEC’s decision to reinforce her ongoing efforts to regulate the crypto industry more strictly, asserting, “If the SEC is allowing crypto to become even more entrenched in our financial system, then it is crucial that crypto adhere to basic anti-money laundering rules.”
Her Digital Asset Anti-Money Laundering Act, reintroduced in October, has now garnered support from 19 Senators, including two Republicans. The bill, criticized by certain members of the crypto sector for potentially stifling innovation and driving companies offshore, was initially introduced last session.
Warren’s comments on Thursday contrast with the rare praise expressed by several Republican lawmakers for the SEC on Wednesday following the announcement of the ETFs’ approval.
House Financial Services Committee Chairman Patrick McHenry, R-N.C., and digital assets subcommittee head French Hill, R-Ark., released a joint statement stating, “While legislation to provide clarity and certainty for digital assets remains necessary, the steps taken today are a significant improvement over the SEC’s track record of regulation by enforcement. We are pleased that investors and our markets will finally be afforded greater access to this transformative technology.”
Among the three commissioners who voted in favor of approving bitcoin ETFs is Chair Gary Gensler, who has previously voiced skepticism towards cryptocurrencies. Gensler clarified that his decision was primarily based on legal considerations rather than personal acceptance.
Gensler penned a statement saying, “The US Court of Appeals for the District of Columbia held that the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed exchange-traded product. Based on these circumstances and those discussed more fully in the approval order, I believe the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETF shares.”
While acknowledging bitcoin’s volatility, speculative nature, and potential for illicit financial activity, Gensler’s stance reflects the legal boundaries and court decisions surrounding the matter.