Jim Cramer Thanks SEC Chairman for Standing up to ‘Crypto Bullies’ Seeking Spot Bitcoin ETF Approval – Regulation Bitcoin News

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The host of Mad Mon­ey, Jim Cramer, has thanked Secu­ri­ties and Exchange Com­mis­sion (SEC) Chair­man Gary Gensler for stand­ing up to the “cryp­to bul­lies” who want the reg­u­la­tor to approve a spot bit­coin exchange-trad­ed fund (ETF). Cramer has repeat­ed­ly warned about the SEC crack­ing down on uncom­pli­ant cryp­to firms, urg­ing investors to get out of the asset class now.

Jim Cramer Praises SEC Chairman Gary Gensler

The host of CNBC’s Mad Mon­ey show, Jim Cramer, has thanked the chair­man of the U.S. Secu­ri­ties and Exchange Com­mis­sion (SEC), Gary Gensler, for not approv­ing a spot bit­coin exchange-trad­ed fund (ETF). Cramer is a for­mer hedge fund man­ag­er who co-found­ed Thestreet.com, a finan­cial news and lit­er­a­cy website.

The Mad Mon­ey host tweet­ed Friday:

Thank you, SEC Chief Gary Gensler for stand­ing up to the cryp­to bul­lies who want­ed an ETF. They could have been blown to king­dom come by Gen­e­sis Glob­al, now fil­ing for bankruptcy.

Cryp­to lender Gen­e­sis Glob­al Cap­i­tal LLC is part of a sub­sidiary of ven­ture cap­i­tal firm Dig­i­tal Cur­ren­cy Group (DCG). Gen­e­sis filed for bank­rupt­cy fol­low­ing an SEC law­suit alleg­ing that the com­pa­ny and cryp­to exchange Gem­i­ni offered and sold unreg­is­tered secu­ri­ties to retail investors through the Gem­i­ni Earn cryp­to asset lend­ing program.

Anoth­er DCG sub­sidiary is dig­i­tal asset man­ag­er Grayscale Invest­ments, which has been try­ing to con­vert its flag­ship Bit­coin Trust (GBTC) into a spot bit­coin ETF. How­ev­er, the secu­ri­ties watch­dog has not approved the company’s fil­ing. In June last year, Grayscale filed a law­suit against the SEC chal­leng­ing the regulator’s deci­sion to reject its bit­coin ETF application.

In addi­tion, Bloomberg report­ed ear­li­er this month that the U.S. Depart­ment of Jus­tice (DOJ)’s East­ern Dis­trict of New York and the SEC are inves­ti­gat­ing inter­nal trans­fers between Gen­e­sis and DCG.

Many People Disagree With Cramer

Many bit­coin pro­po­nents on Twit­ter dis­agreed with the Mad Mon­ey host. Lawyer John Deaton wrote: “So any­one who favored a spot BTC ETF is a bul­ly? Cramer believes peo­ple were pro­tect­ed by Gary Gensler NOT grant­i­ng a spot ETF, even though BTC futures and short ETFs exist. These com­pa­nies didn’t get in trou­ble because of bit­coin.” ETF Store Pres­i­dent Nate Geraci opined:

I would argue exact oppo­site… SEC fail­ing to approve spot ETF led to rise of GBTC arbi­trage trade (where large accred­it­ed investors took advan­tage of retail). Mean­ing­ful por­tion of Gen­e­sis sol­ven­cy issues stem from lend­ing to 3AC, etc to exe­cute that arbi­trage trade (which blew up).

Cramer has repeat­ed­ly warned about the SEC doing a “roundup” of uncom­pli­ant cryp­to firms, advis­ing investors to get out of cryp­to now. “I wouldn’t touch cryp­to in a mil­lion years,” the Mad Mon­ey host stressed. He often cit­ed John Reed Stark, SEC’s for­mer head of inter­net enforce­ment, who recent­ly said a “reg­u­la­to­ry onslaught is just begin­ning.” Fol­low­ing the SEC law­suit against Gem­i­ni and Gen­e­sis, Cramer tweet­ed: “Here comes the crack­down: Gen­e­sis and Gem­i­ni are first. We have had a fab­u­lous short squeeze run. Ka-ching. Ka-ching.”

SEC Slammed for Enforcement-Centric Approach

While Cramer appre­ci­at­ed Gensler and the SEC, many peo­ple have crit­i­cized the SEC chair­man for focus­ing on enforce­ment and not tak­ing action to pre­vent the FTX cat­a­stro­phe after sev­er­al meet­ings with for­mer FTX CEO Sam Bankman-Fried (SBF).

Con­gress­man Tom Emmer (R‑MN) com­ment­ed on Twit­ter last week after the SEC announced charges against Gem­i­ni and Gen­e­sis: “Gary Gensler is once again late to the game, ‘pro­tect­ing’ no one. Quite clear that his polit­i­cal ‘reg­u­la­tion through enforce­ment’ strat­e­gy hurts every­day Amer­i­cans.” In a fol­low-up tweet, the law­mak­er wrote:

Gary Gensler, when can we expect proac­tive guid­ance instead of leav­ing the indus­try to inter­pret the rules of the road through your after-the-fact enforce­ment actions?

Tags in this story
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What do you think about Jim Cramer thank­ing SEC Chair­man Gary Gensler? Let us know in the com­ments sec­tion below.

Kevin Helms 

A stu­dent of Aus­tri­an Eco­nom­ics, Kevin found Bit­coin in 2011 and has been an evan­ge­list ever since. His inter­ests lie in Bit­coin secu­ri­ty, open-source sys­tems, net­work effects and the inter­sec­tion between eco­nom­ics and cryptography.




Image Cred­its: Shut­ter­stock, Pix­abay, Wiki Commons

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