May 20, 2024
Crypto

Crypto Community Fires Back As Better Markets Opposes Approval


Dennis M. Kelleher, Co-Founder and CEO of Better Markets, has issued a clear warning against the approval of Spot Bitcoin Exchange-traded Funds (ETFs). This firm assertion sheds light on the important concerns surrounding the potential consequences for investors if the Securities and Exchange Commission (SEC) approves the Spot Bitcoin ETFs.

Better Markets CEO Opposes Bitcoin ETF Approval

In a Supplemental Comment Letter to the SEC, the Better Markets Co-Founder stated, “The approval of Spot Bitcoin ETPs would be a historic mistake almost certainly leading to massive investor harm.” Kelleher’s argument is based on the inevitable threat of fraud and manipulation in the Bitcoin market.

He believes Spot Bitcoin ETF approval would expose millions of investors and retirees to the harms the SEC exists to prevent. Additionally, Kelleher worries that if the proposal is approved, the crypto industry might use the opportunity to appear legitimate. This could potentially deceive retail investors with misleading marketing.

The CEO further argues that denying the proposed rule changes is not just a suggestion but a legal imperative. Moreover, Kelleher points to the statutory obligation that exchange rules must be designed to prevent fraudulent and manipulative acts and practices. Therefore, he asserts that allowing the listing and trading of Spot Bitcoin ETFs would violate these fundamental legal requirements.

Also Read: Bitcoin ETF: Coinbase’s Involvement Could Spark Delays

Kelleher also dismissed proposed surveillance-sharing agreements between exchanges as superficial measures. He describes them as mere “window-dressing.” He added they adequately detect or address the uncontrolled fraud and manipulation in the Bitcoin market. Furthermore, the Better Markets CEO also emphasizes the need for the SEC to recognize the inadequacy of these proposals.

Crypto Community Fires Back

The crypto community hasn’t received the recent development well. In a post on X, Eleanor Terrett, a FOX News journalist, responded to Better Markets’ letter to the SEC. She said it was “no surprise” that the organization did so as Senator Elizabeth Warren has been endorsing Kelleher and his team via a testimonial.

Senator Warren has repeatedly expressed her “anti-crypto” sentiments. Hence, Terrett’s post on X garnered several comments directing hate toward the Senator and Kelleher. Moreover, when Kelleher shared the letter on X, Matt Ahlborg, who has been studying the utility usage of crypto opposed Kelleher’s claims.

Ahlborg stated that crypto isn’t “socially useless” as Better Markets believes. In another post, he added that the Bitcoin ETF proposal could get “rugged” after Better Markets’ letter to the SEC in the “11th hour.” He also noted that the organization has “special” ties with Senator Warren that could play in their favor.

In addition, LP Capital Chi, a crypto analyst on X, pointed out the incorrect date mentioned in the letter. He noted that the organization is so “incompetent” that they couldn’t even get the date correct.

According to market sentiments, the decision on Bitcoin ETFs is expected to come between January 8 and January 10. Earlier, several industry participants were rooting for the judgment to come as early as January 5. However, no such update was announced. Instead, the SEC has asked the exchanges and issuers to submit their final amendment.

Also Read: Blackrock Bitcoin ETF Has $2 Bln Worth BTC Lined Up For Trading



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