Dennis M. Kelleher, co-founder and CEO of Higher Markets, desires the U.S. Securities and Change Fee (SEC) to reject all functions for spot Bitcoin exchange-traded merchandise (ETPs).
In a Jan. 5 letter to the SEC, Kelleher argued that the approval would expose thousands and thousands of American buyers to fraud and manipulation, which the SEC is remitted to stop, resulting in “huge investor hurt.”
He expressed his fears within the context of a current report by blockchain safety agency Rip-off Sniffer that exposed greater than 324,000 crypto customers fell prey to fraud in 2023, leading to a lack of round $295 million.
“It could expose numerous hardworking Individuals to the dangers inherent in investing in bitcoin. These dangers haven’t solely been apparent over the past three years however have materialized repeatedly, leading to billions of {dollars} of losses.”
Dennis Kelleher, Higher Markets CEO
Furthermore, the Higher Markets chief government, who has a distinguished profession in regulation, coverage, and advocacy, posited that the regulation mandates the principles of change to stop fraudulent and manipulative practices, which, he asserted, the crypto business is rife with.
Kelleher additionally instructed that the proposed rule adjustments would give the crypto business a veneer of legitimacy, which he feels it doesn’t deserve.
In his opinion, present surveillance-sharing agreements between exchanges are merely superficial and have to this point failed to deal with the rampant fraud and manipulation within the crypto market.
Crypto group responds to Higher Markets
Reactions to Kelleher’s warnings have been largely adverse, with some key figures within the crypto business dismissing his considerations.
Bloomberg ETF analyst James Seyffart took to X, arguing that it could be a “felony transfer” to dismiss the applications given the effort and time spent by issuers and SEC workers over the previous months.
The analyst instructed that Kelleher’s criticism may impression the SEC’s choice, significantly given the Higher Markets CEO’s alleged shut relationship with SEC Chairman Gary Gensler.
Seyffart additionally identified Kelleher’s constant skepticism of the crypto business.
FOX Information journalist Eleanor Terrett listed a number of of Kelleher’s previous feedback in regards to the sector, together with his perception that the crypto business serves “no reliable or socially helpful function” and has a “basically predatory enterprise mannequin.”
Terrett additionally acknowledged Higher Markets’ place on spot Bitcoin ETFs was not shocking given the group’s endorsement by Senator Elizabeth Warren, who is particularly critical of the crypto sector.
Including his voice to the talk, crypto analyst Matt Ahlborg additionally countered Kelleher’s claims, arguing that crypto does serve a social function, opposite to Higher Markets’ place.
He additionally expressed considerations that the Bitcoin ETF proposal might face challenges following Higher Markets’ late-stage intervention with the SEC and in addition famous the group’s ties with Warren.
Moreover, LP Capital Chi, one other crypto analyst, criticized Higher Markets for an error within the date talked about of their letter.
The choice on Bitcoin ETFs is extremely anticipated by the market, with expectations for his or her approval set between Jan. 8 and 10. Beforehand, business contributors had been eager for a judgment as early as Jan. 5, however the SEC requested exchanges and issuers to submit their last modification, thus delaying the choice.
Market watchers forecast that the SEC’s choice on a spot Bitcoin ETF might have a big impression on Bitcoin’s future value, with some predicting a drop in its worth ought to the SEC reject the proposal. In distinction, others have predicted approval might push BTC costs as excessive as $80,000.
As of this report, Bitcoin was buying and selling at roughly $43,902, exhibiting a modest 0.60% enhance within the earlier 24 hours.