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Mad Money host Jim Cramer stands up to SEC chairman Gary Gensler as he stands up to ‘crypto bullies’ who want regulators to approve a Bitcoin exchange-traded fund (ETF) I am grateful to Cramer has repeatedly warned that the SEC will crack down on non-compliant cryptocurrency companies, urging investors to exit the asset class now.
Jim Cramer Praises SEC Chairman Gary Gensler
Jim Cramer, host of CNBC’s Mad Money Show, thanked U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler for not approving Bitcoin exchange-traded funds (ETFs). Cramer is a former hedge fund manager, where he co-founded Thestreet.com, his website for financial news and literacy.
The Mad Money host tweeted on Friday:
Thank you to SEC Chief Gary Gensler for standing up to crypto bullies who want ETFs. They may have been blown into the kingdom by Genesis Global, which is currently filing for bankruptcy.
Cryptocurrency lender Genesis Global Capital LLC is part of a subsidiary of venture capital firm Digital Currency Group (DCG). Genesis has filed for bankruptcy following an SEC lawsuit alleging that the company and cryptocurrency exchange Gemini offered and sold unregistered securities to retail investors through Gemini’s Earn cryptocurrency lending program.
Another subsidiary of DCG is digital asset manager Grayscale Investments, which is looking to transform its flagship Bitcoin Trust (GBTC) into a spot Bitcoin ETF. However, securities regulators have not approved the company’s filing. Last June, Grayscale filed a lawsuit against the SEC challenging the regulator’s decision to reject the Bitcoin ETF application.
Additionally, Bloomberg reported earlier this month that the U.S. Department of Justice’s (DOJ) Eastern District of New York and the SEC are investigating internal transfers between Genesis and DCG.
Many disagree with Kramer
Many Bitcoin supporters on Twitter disagreed with the Mad Money host.Lawyer John Deaton I have written: “Anyone who likes spot BTC ETFs is a bully? Cramer said people were protected by Gary Gensler not allowing spot ETFs despite the existence of BTC futures and short ETFs. Believe me, these companies weren’t in trouble because of Bitcoin,” said Nate Jerashi, President of ETF Store. commented:
I would argue just the opposite… The SEC’s failure to approve spot ETFs has led to an increase in GBTC arbitrage (where large accredited investors go retail). A significant part of Genesis’ solvency problems stems from him lending to the likes of 3AC to run its arbitrage deals (which ended in a fiasco).
Cramer has repeatedly warned that the SEC is conducting a “survey” of non-compliant cryptocurrency companies and advised investors to get out of cryptocurrencies now. “We won’t touch cryptocurrencies in a million years,” stressed the Mad Money host. He often quoted his John Reed Stark, the SEC’s former Internet operating officer. “The regulatory onslaught is just beginning,” Cramer tweeted recently, following his SEC lawsuit against Gemini and Genesis. I had a great short squeeze run. Kachin. Kachin.
SEC Condemns Law Enforcement-Centric Approach
Cramer held Gensler and the SEC in high regard, but after several meetings with former FTX CEO Sam Bankman-Fried (SBF), many believed that the SEC chairman would focus on enforcement and FTX. criticized for failing to take action to prevent a catastrophe.
Rep. Tom Emmer (R-Minnesota) commented on Twitter last week after the SEC announced the indictments against Gemini and Genesis. It is clear that his political “regulation by enforcement” strategy hurts everyday Americans. ’” In a follow-up tweet, the lawmaker wrote:
Gary Gensler, when can we expect proactive guidance rather than leaving the industry to interpret traffic rules through ex post enforcement action?
What are your thoughts on Jim Cramer thanking SEC Chairman Gary Gensler? Let us know in the comments section below.
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