Better Markets CEO urges SEC not to approve spot Bitcoin ETF, analysts push back
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Better Markets co-founder and CEO Dennis M. Kelleher wants the U.S. Securities and Exchange Commission (SEC) to reject all applications for spot Bitcoin exchange-traded products (ETPs).
January 5 letter Kelleher told the SEC that the approval would expose millions of U.S. investors to fraudulent and manipulative practices, and that the SEC has a responsibility to prevent this from happening, resulting in “enormous investor harm.”
He expressed his concerns over recent events Report An investigation by blockchain security company Scam Sniffer revealed that more than 324,000 cryptocurrency users suffered fraud in 2023, resulting in losses of approximately $295 million.
“This will expose countless hard-working Americans to the risks inherent in investing in Bitcoin. These risks have not only been evident over the past three years, but have recurred repeatedly, resulting in billions of dollars in losses.”
Dennis Kelleher, CEO of Better Markets
Furthermore, the Better Markets CEO, who has had a distinguished career in law, policy and advocacy, believes that the law provides trading rules to prevent fraud and manipulation, which he asserts is rife with the cryptocurrency industry.
Kelleher also said that the proposed rule changes would give the cryptocurrency industry a veneer of legitimacy, but he believed it was not worth it.
In his view, current oversight-sharing agreements between exchanges are superficial and have so far failed to address rampant fraud and manipulation in the crypto market.
Crypto Community Responds to Better Market
Reaction to Kelleher’s warning has been mostly negative, with some key figures in the cryptocurrency industry dismissing his concerns.
Bloomberg ETF analyst James Seyffart told
The analyst said Kelleher’s criticism could influence the SEC’s decision, especially given the Better Markets CEO’s alleged close relationship with SEC Chairman Gary Gensler.
Seyffart also pointed to Kelleher’s consistent skepticism of the crypto industry.
Fox News reporter Eleanor Terrett listed some of Kelleher’s past comments about the industry, including his belief that the crypto industry “has no legitimate or socially useful purpose” and has a “fundamentally predatory business model.”
Terrett also said Better Markets’ stance on a spot Bitcoin ETF is not surprising, given that the group has the backing of Senator Elizabeth Warren, who has been particularly critical of the crypto industry.
Cryptocurrency analyst Matt Ahlborg also joined the debate, refuting Kelleher’s claims, arguing that cryptocurrencies do serve social purposes, contrary to Better Markets’ position.
He also expressed concern that the Bitcoin ETF proposal may face challenges after Better Markets’ late intervention by the SEC, pointing to the organization’s relationship with Warren.
Additionally, another cryptocurrency analyst, LP Capital Chi, criticized Better Markets for citing incorrect dates in the letter.
The decision about Bitcoin ETFs is important expected Market approval of this decision is expected to be from January 8th to 10th. Previously, industry insiders hoped to make a judgment as early as January 5, but the SEC required exchanges and issuers to submit final amendments, thus delaying the decision.
Market observers predict that the SEC’s decision on a Bitcoin ETF spot could have a significant impact on Bitcoin’s future price, with some predicting that Bitcoin’s value will fall if the SEC rejects the proposal. In contrast, others predict that approval could push BTC prices as high as $80,000.
As of this report, Bitcoin is trading at around $43,902, up a modest 0.60% in the past 24 hours.
