Nonprofit Better Markets Urges US SEC to Reject Spot Bitcoin ETF Application

Odaily Planet Daily News The letter submitted by the non-profit organization Better Markets pointed out that the US SEC should reject a large number of recent spot bitcoin ETF applications because it is worried that this may cause harm to investors. Stephen Hall, legal director and securities expert at Better Markets, said in a statement Wednesday that the crypto industry has suffered $2 trillion in losses, multiple enforcement actions, bankruptcies, lawsuits and criminal prosecutions. Hall explained: "At the same time, the main beneficiaries of the crypto boom are criminals who use cryptocurrencies for ransomware, money laundering and all kinds of illegal activities. It is against this background that the US SEC must assess this month's latest A wave of Bitcoin ETF applications." Better Markets filed two letters on Tuesday, specifically commenting on applications for eight bitcoin spot ETFs. “Our opinion letter urges the SEC to maintain consistency with its previous orders not to approve such applications and to reject the eight proposed rule changes brought to the agency,” Hall said. The companies that have applied have named Coinbase as an oversight-sharing partner to help assuage regulators' concerns about market manipulation. Better Markets said that despite Coinbase's global presence, "only a small percentage" of bitcoin spot transactions take place on Coinbase. “Thus, relying on an exchange that accounts for only a tiny fraction of total Bitcoin trading volume to conduct market surveillance for a commodity ‘known’ for heavily manipulated money laundering transactions is, therefore, critical to detection or There is little value in preventing manipulation of the Bitcoin spot ETP.” Better Markets also pointed out that Coinbase is not registered with the SEC or CFTC, while citing its legal dispute with the SEC. (The Block)