As a seasoned crypto investor with a keen interest in regulatory developments, I find Better Markets’ criticism of the recent approval of Ethereum ETFs both alarming and valid. Having witnessed the volatility and risks associated with cryptocurrencies firsthand, I share their concerns.
In a bold action, the non-profit organization Better Markets, which advocates for public interests in financial markets, has issued a harsh rebuke against the SEC’s recent approval of Spot Ethereum ETFs. The director of securities policy at Better Markarks, Benjamin Schiffrin, didn’t hold back in his criticism of the regulatory body.
Better Markets Criticizes The Approval Of Ethereum ETFs
Schiffrin described this action as a “significant blunder” that could amplify the risks for investors in the unpredictable crypto market. Notably, this comment follows the SEC’s decision to permit national securities exchanges to list and trade shares of Spot Ethereum ETPs based on proposed rule changes.
Within the financial sector, the announcement has sparked considerable debate and unease due to the latest indictments and convictions involving fraudulent crypto practices. As expressed by Schiffrin, “Today, the SEC repeated its past error in allowing the launch of bitcoin spot ETPs.”
Further, he underscored the risks involved in investing in Ethereum’s native currency, ETH. Additionally, he provided examples of past incidents as proof of the potential hazards related to Ethereum Spot ETFs. He called attention to a recent case where two brothers allegedly manipulated the Ethereum blockchain to illegitimately amass large sums of cryptocurrency.
In his explanation, Schiffrin pointed out that in our initial and additional comments, we emphasized the reasons why the suggested rule modifications to permit listing and trading of spot Ethereum ETPs (Exchange-Traded Products) should have been declined. He underscored the inherent volatility of Ether as a financial asset and the susceptibility of the Ethereum network to deceit and manipulation. Moreover, he issued a caution that the authorization of Spot Ethereum ETPs would potentially put retail investors at risk and jeopardize the stability of the broader financial market.
Statement Against Sam Bankman-Fried & CZ
As an analyst, I would rephrase it as follows: My analysis also highlights the significance of the involvement of notable figures such as Sam Bankman-Fred of FTX and Changpeng Zhao (CZ) of Binance in fueling the apprehensions voiced by Better Markets. Notably, these individuals have recently encountered legal issues; Bankman-Fred was found guilty of stealing massive amounts of money, while CZ confessed to money laundering charges.
As a researcher examining recent court rulings, I’ve discovered that Sam Bankman-Fried was sentenced to serve 64 months in prison. In contrast, Changpeng Zhao of Binance received a sentence of only 4 months, but it’s uncertain if he has begun serving it yet. According to Better Markets, the potential risks Ethereum Exchange Traded Funds (ETFs) may pose to the financial system could be reminiscent of the situations involving Bankman-Fried and Zhao.
Despite drawing criticism for this declaration, Better Markets may not have taken note of the recent change in position on cryptocurrency by the SEC and Biden administration. Nate Geraci, the ETF Prime host, pointed out the unexpected turnaround in a humorous manner, quipping, “It seems Better Markets missed the memo about adjusting their stance on crypto from Washington.”
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2024-05-25 13:14