Dennis M. Kelleher, CEO of the nonprofit organization Better Markets, has expressed strong opposition to the approval of a spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC). Kelleher argues that such an approval would contradict the principles of the regulatory body and expose investors to significant risks.
In a letter to SEC Secretary Vanessa Countryman on January 5, Kelleher warned of the potential for massive investor harm if the SEC approves the pending rule change. He expressed concern that the proposed product could expose investors to potential fraud, a risk that has been associated with the crypto industry since its inception.
“The approval of these spot Bitcoin ETPs would not only expose investors to a market thoroughly contaminated with fraud and manipulation,” Kelleher stated. He also noted that such an approval would allow the crypto industry to claim that their products have been endorsed by the United States government.
Despite these concerns, the crypto industry continues to push forward. On January 1, it was reported that over 324,000 crypto users fell victim to phishing scams in 2023, resulting in approximately $295 million in digital assets being lost to wallet drainers. However, prominent figures in the crypto industry have dismissed Kelleher’s letter. James Seyffart, a Bloomberg ETF analyst, criticized the letter on social media, emphasizing the substantial effort asset management firms have invested in advancing their applications.
On January 5, it was reported that 11 spot Bitcoin ETF applicants submitted 19b-4 amendment forms. These forms represent one of the final stages in the SEC approval process. However, S-1 documents must be completed before U.S. exchanges can begin listing shares of investment securities with direct exposure to crypto.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Vanessa Countryman, Cathie Wood, Dennis M. Kelleher, James Seyffart |
| Companies | Binance, United States Securities and Exchange Commission, Better Markets, ARK, Bloomberg |
| Currencies | Bitcoin, BUSD |
| Securities | None |
