The SEC Authorities can occasionally help people escape unfair financial situations. However, in other cases, the authority is accused of abusing itself. The SEC and Bitcoin have recently been in the headlines, particularly from the perspective of exchange-traded products and funds, or ETPs and ETFs. Here is everything you require to know.
The Wall Street Journal claims that cryptocurrency investors should be permitted to freely invest at their own risk.
The well-known SEC, or American Securities and Exchange Commission, is headed by Gary Gensler. By rejecting exchange-traded products (ETPs) and exchange-traded funds (ETFs) related to Bitcoin (BTC) in the US, he gained notoriety. The Wall Street Journal published an editorial criticizing these actions. The editorial claims that the SEC is holding cryptocurrency investors captive.
They are thus mainly kept in check when it comes to their financial moves, particularly when it comes to bitcoin. The publication even describes the SEC as a crypto-agnostic organization. He thinks investors should have total flexibility to invest at their own risk and that it is not the SEC’s place to forbid any cryptocurrency trading on the exchange.
The editorial makes the case that the presence of spot Bitcoin ETPs and ETFs could lessen volatility and increase market liquidity. These monies lessen the chance of hacking and private key loss. As a result, additional institutional investors might be drawn in.
The SEC’s worries that the BTC market is susceptible to manipulation are unfounded. Recall that the deepest and most established market in the cryptocurrency space is the $390 billion bitcoin market.
Bitcoin and cryptocurrencies: a less-scary Wild West
With its abrupt price increases, fast crashes, and jagged swings, the cryptocurrency market is appropriately referred to as the Wild West of investments. But it is clear that it is not as terrifying as it first appears. This does not, at the very least, support the SEC’s decision to prohibit
Bitcoin ETPs and ETFs. Quite the opposite. If the goal is to safeguard investors, Gary Gensler’s effort could even be considered detrimental.
Even cryptocurrency asset manager Grayscale recently received a denial on its request to convert its current Grayscale Bitcoin Trust into a spot ETF.
But this conversion had long been anticipated, and the SEC had been properly notified. Grayscale then sued the SEC in response to this denial. He referred to the agency’s choice as “discriminatory” and “totally arbitrary.”
