By Michael Scott
Senator Elizabeth Warren has expressed her dissent to the decision by the US Securities and Exchange Commission (SEC) to approve the bids for spot Bitcoin exchange-traded funds (ETF).
The Massachusetts Senator echoed her opposition to crypto, decrying that the Gary Gensler-led Commission erred on the law and approval notice conveyed on Wednesday confirming the Bitcoin ETF decision.
Warren Dissents on Decision to Approve Bitcoin ETFs
Warren’s comment conveyed in a Friday, January 12 post comes a day following the securities regulator confirming the landmark decision realized in a vote approving 11 new spot Bitcoin ETFs.
The newly approved Bitcoin ETFs will trade at the $4.5 billion level by Thursday in its debut session. The daily trade volume slipped to $4.04 billion on Friday, January 12.
The Democratic senator considers the SEC’s decision as the opportunity to heighten efforts towards cracking down on the crypto she alleges contravenes the basic anti-money laundering regulations.
Warren indicated that the decision by the SEC to allow the crypto to infiltrate deeper into the traditional financial system makes it urgent for digital assets to comply with the primary anti-money laundering rules.
Warren’s Crackdown Bill on Crypto
Warren’s dissent to the SEC’s decision to approve the spot Bitcoin ETFs after a decade of rejection coincides with the Warren-sponsored Digital Asset Anti-Money Laundering Act garnering the support of 19 senators following its reintroduction in October. Several crypto industry leaders have criticized the draft bill, warning that it could stifle crypto innovation and force firms offshore.
Warren’s condemnatory comments come after several Republican colleagues hailed the SEC’s historic decision on Wednesday to issue a notice of approval for the ETFs it confirmed to satisfy the exchange securities law.
The House Financial Services Committee chair Patrick McHenry hailed SEC’s steps as signifying improvement from its culture of regulation by enforcement despite the acts that regulation to offer certainty and clarity necessary.
The statement, issued jointly with the French Hill who chairs the digital assets subcommittee, expressed gratitude for the regulator’s regulatory move since investors and markets are facilitated with greater access to technology.
Gensler Explains Support for Bitcoin ETFs
Despite his historic crypto skepticism, Gensler was among the three commissioners voting to approve the Bitcoin ETFs. The chair indicated that the decision to vote in favor was prompted more by the legal constraints and not personal acceptance.
Gensler pronounced his decision in a statement conveyed on Wednesday evening that the District of Columbia-base Court of Appeals ruled that SEC failed to adequately explain the ground for disapproving the Grayscale’s bid to convert Bitcoin Trust (GBTC) into a proposed exchange-traded product (ETP).
Gensler cited the circumstances alongside the details outlined in the approval order as indicative that approving the listing and trading of the Bitcoin ETP shares is the ideal and sustainable path forward.
Nonetheless, Gensler added that the approval does not extinguish the volatility of Bitcoin alongside its speculative nature. He labelled Bitcoin as still a primary tool leveraged for executing illicit financial activity.