walknote.eu.org - The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has issued a warning to crypto investors on X (formerly Twitter), as numerous asset managers await the final decision on applications for Bitcoin exchange-traded funds (ETFs). In a series of tweets on X, Gensler urged investors to exercise caution and be vigilant about the risks associated with cryptocurrency. He emphasized that crypto service providers may not comply with federal securities laws when offering crypto investment opportunities, emphasizing the volatile and rapidly changing nature of crypto assets.
Crypto Fraud and Exploitation
Gensler highlighted the prevalence of fraud in the crypto industry, noting that scammers continue to exploit the growing popularity of crypto assets to lure retail investors into various schemes. He cited examples such as fake coin offerings, Ponzi and pyramid schemes, and direct theft by crypto project promoters.
The SEC's Warning Amid ETF Applications
The Chairman's statement came just hours after several Bitcoin Spot ETF issuers submitted amendments to their applications to the SEC. This submission marks one of the final steps in the approval process for crypto ETFs in the United States. Notable asset managers, including Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise, and Franklin Templeton, have all applied for Bitcoin spot ETFs.
The SEC's Warning Amid ETF Applications
The Chairman's statement came just hours after several Bitcoin Spot ETF issuers submitted amendments to their applications to the SEC. This submission marks one of the final steps in the approval process for crypto ETFs in the United States. Notable asset managers, including Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise, and Franklin Templeton, have all applied for Bitcoin spot ETFs.
The SEC has been evaluating Bitcoin spot ETF applications for several years but has yet to grant approval. The regulatory body has expressed concerns about Bitcoin's volatility and the potential for market manipulation in the Bitcoin spot market.
DisclaimerEvery investment decision rests with the reader. Research and analyze before buying and selling crypto assets. Liputan6.com is not responsible for gains and losses resulting from investment decisions.
X SEC Account Hacked, False Approval of Bitcoin ETF Announced
Earlier reports indicated that the X account of the U.S. Securities and Exchange Commission (SEC) was hacked and infiltrated by unknown parties, who made a post falsely announcing the SEC's approval of the registration of a Bitcoin Spot ETF. The false post, including fake comments attributed to SEC Chairman Gary Gensler, briefly triggered a surge in Bitcoin prices.
After the post circulated, Gensler clarified from his X account that the announcement was false, and the agency had not taken any action regarding the Bitcoin Spot ETF. Currently, around a dozen companies have applied to register ETFs backed by Bitcoin in the U.S., and the SEC has until January 10 to take action on at least one of these applications.
Many crypto industry participants speculate that the regulator will use this date to announce multiple decisions simultaneously.
Technical Requirements for Bitcoin Spot ETF Trading
Two technical requirements must be met before a Bitcoin spot ETF can commence trading. First, the SEC must sign what is known as the 19b-4 filing by the exchange that will list the ETF. Second, the regulator must approve the relevant S-1 form, which is the registration application from the prospective issuer, including BlackRock and Fidelity.
The SEC plans to vote on the exchange's filing this week. The regulator may or may not take action on the issuer's application, the S-1, at roughly the same time. If the SEC grants both sets of required approvals, the ETF can start trading immediately on the next business day.
SEC Chairman Gary Gensler Issues Warning on Crypto Investments
Previously reported, SEC Chairman Gary Gensler issued a warning about crypto currency investments, citing numerous violations in the crypto investment sector. He emphasized that such violations damage trust when so many people are harmed, and the only recourse they have is to queue up in bankruptcy court. Gensler's warning coincided with market expectations for the approval of a Bitcoin Spot ETF in the near future.
"There is a lot of non-compliance in the crypto world. This undermines confidence when so many people are harmed, and all they can do is queue up in bankruptcy court. Furthermore, this can make it difficult for well-intentioned actors to compete," he said, as quoted from Bitcoin on Saturday, December 23, 2023.
Gensler outlined common non-compliance issues in the crypto industry related to securities laws. These laws are designed not only "to provide you with transparency so you can make investment decisions but also to protect you from fraud and manipulation."
He reiterated that crypto also violates laws established by other regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN).
"It's really the Wild West and it's spread all over the world," said Gensler.
He emphasized that this is not just happening to one or a few bad actors. It is something widespread in this field globally, making it challenging for well-intentioned actors to compete due to numerous challenges elsewhere.
"Crypto companies like Coinbase (a publicly traded company overseen by the SEC) have been trying to get clarity on SEC guidelines for compliance for the last few years. The SEC has not taken a clear stance and relies on regulation through enforcement," he said.
On the other hand, Gensler and the SEC under his leadership have been criticized by many for taking an enforcement-centric approach to regulate the crypto industry. There is even legislation in Congress that aims to remove him from the position of SEC chairman.
Meanwhile, the SEC is currently evaluating 13 Bitcoin Spot ETF applications and is expected to approve some of them on January 10.
SEC Rejects New Crypto Regulations
Previously reported, on Friday, December 15, 2023, the U.S. Securities and Exchange Commission (SEC) rejected a petition from Coinbase Global seeking new rules from the agency for the digital asset sector, prompting the country's largest crypto exchange to challenge the decision in court.
The five-member commission, in a 3-2 vote, stated that they would not propose new rules as they fundamentally disagreed that existing regulations could not be applied to the crypto field. Coinbase said it had filed a petition to review the SEC's decision in court.
This dispute is the latest in the ongoing tension between the crypto sector and major U.S. market regulators, who have repeatedly stated that most crypto tokens are securities and subject to their jurisdiction.
The agency has sued several crypto companies, including Coinbase, for listing and trading crypto tokens that it believes should be registered as securities.
"The existing laws and regulations apply to the crypto securities market," said SEC Chairman Gary Gensler in a separate statement supporting the decision, as quoted from Yahoo Finance on Friday, December 22, 2023.
Shortly after, Coinbase informed the federal appeals court in Philadelphia of its plans to seek a review of the SEC's rejection. Coinbase stated that the SEC's decision was "arbitrary and capricious" and amounted to an "abuse of discretion," according to a court filing shared on the X social media platform.
In 2022, the company pressed the SEC to create a specific set of rules for the crypto sector, arguing that existing U.S. securities laws were inadequate. In April, Coinbase filed a petition with a judge to force the SEC to respond to that petition.
The court stated it would not compel the agency to act, considering the SEC had stated it would respond to Coinbase's petition. The crypto company said they wanted a clearer picture of when the SEC views digital assets as securities. (wp)
Technical Requirements for Bitcoin Spot ETF Trading
Two technical requirements must be met before a Bitcoin spot ETF can commence trading. First, the SEC must sign what is known as the 19b-4 filing by the exchange that will list the ETF. Second, the regulator must approve the relevant S-1 form, which is the registration application from the prospective issuer, including BlackRock and Fidelity.
The SEC plans to vote on the exchange's filing this week. The regulator may or may not take action on the issuer's application, the S-1, at roughly the same time. If the SEC grants both sets of required approvals, the ETF can start trading immediately on the next business day.
SEC Chairman Gary Gensler Issues Warning on Crypto Investments
Previously reported, SEC Chairman Gary Gensler issued a warning about crypto currency investments, citing numerous violations in the crypto investment sector. He emphasized that such violations damage trust when so many people are harmed, and the only recourse they have is to queue up in bankruptcy court. Gensler's warning coincided with market expectations for the approval of a Bitcoin Spot ETF in the near future.
"There is a lot of non-compliance in the crypto world. This undermines confidence when so many people are harmed, and all they can do is queue up in bankruptcy court. Furthermore, this can make it difficult for well-intentioned actors to compete," he said, as quoted from Bitcoin on Saturday, December 23, 2023.
Gensler outlined common non-compliance issues in the crypto industry related to securities laws. These laws are designed not only "to provide you with transparency so you can make investment decisions but also to protect you from fraud and manipulation."
He reiterated that crypto also violates laws established by other regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN).
"It's really the Wild West and it's spread all over the world," said Gensler.
He emphasized that this is not just happening to one or a few bad actors. It is something widespread in this field globally, making it challenging for well-intentioned actors to compete due to numerous challenges elsewhere.
"Crypto companies like Coinbase (a publicly traded company overseen by the SEC) have been trying to get clarity on SEC guidelines for compliance for the last few years. The SEC has not taken a clear stance and relies on regulation through enforcement," he said.
On the other hand, Gensler and the SEC under his leadership have been criticized by many for taking an enforcement-centric approach to regulate the crypto industry. There is even legislation in Congress that aims to remove him from the position of SEC chairman.
Meanwhile, the SEC is currently evaluating 13 Bitcoin Spot ETF applications and is expected to approve some of them on January 10.
SEC Rejects New Crypto Regulations
Previously reported, on Friday, December 15, 2023, the U.S. Securities and Exchange Commission (SEC) rejected a petition from Coinbase Global seeking new rules from the agency for the digital asset sector, prompting the country's largest crypto exchange to challenge the decision in court.
The five-member commission, in a 3-2 vote, stated that they would not propose new rules as they fundamentally disagreed that existing regulations could not be applied to the crypto field. Coinbase said it had filed a petition to review the SEC's decision in court.
This dispute is the latest in the ongoing tension between the crypto sector and major U.S. market regulators, who have repeatedly stated that most crypto tokens are securities and subject to their jurisdiction.
The agency has sued several crypto companies, including Coinbase, for listing and trading crypto tokens that it believes should be registered as securities.
"The existing laws and regulations apply to the crypto securities market," said SEC Chairman Gary Gensler in a separate statement supporting the decision, as quoted from Yahoo Finance on Friday, December 22, 2023.
Shortly after, Coinbase informed the federal appeals court in Philadelphia of its plans to seek a review of the SEC's rejection. Coinbase stated that the SEC's decision was "arbitrary and capricious" and amounted to an "abuse of discretion," according to a court filing shared on the X social media platform.
In 2022, the company pressed the SEC to create a specific set of rules for the crypto sector, arguing that existing U.S. securities laws were inadequate. In April, Coinbase filed a petition with a judge to force the SEC to respond to that petition.
The court stated it would not compel the agency to act, considering the SEC had stated it would respond to Coinbase's petition. The crypto company said they wanted a clearer picture of when the SEC views digital assets as securities. (wp)
Tags: #Crypto, #SEC, #ETF Bitcoin Spot, #Crypto, #Cryptocurrency, #Investor