Senator Elizabeth Warren, a member of the Senate Banking Committee, has publicly criticized the Securities and Exchange Commission (SEC) for its recent approval of 11 spot Bitcoin exchange-traded funds (ETFs). Warren argues that the SEC’s decision is flawed both legally and policy-wise, and she emphasizes the urgent need for basic anti-money laundering (AML) rules in the crypto sector.
Warren’s disapproval stems from her belief that the SEC is not adequately addressing the legal and policy implications of integrating cryptocurrencies like Bitcoin further into the financial system. She has been actively advocating for her Digital Asset Anti-Money Laundering Act, a proposed legislation that aims to extend the requirements of the Bank Secrecy Act, including know-your-customer (KYC) rules, to entities such as miners, validators, and wallet providers within the digital asset industry. The bill has garnered support from 19 other senators, including Republican Senator Lindsey Graham of South Carolina.
However, not all lawmakers share Warren’s concerns. Senator Cynthia Lummis, a Republican from Wyoming, has praised the SEC’s approval of the spot Bitcoin ETFs, believing that this move will offer Americans easier access to crypto assets. Patrick McHenry, a Republican from North Carolina and the House Financial Services Committee Chair, acknowledges the need for legislation to provide clarity and certainty to the digital asset space. He described the SEC’s latest actions as a significant improvement compared to their previous enforcement-focused approach.
Among the commissioners who voted to approve Bitcoin ETFs is Chair Gary Gensler, a historic crypto skeptic. Despite his reservations about the crypto industry, Gensler’s vote on ETFs has raised eyebrows. He clarified that his decision was based more on legal constraints than personal acceptance.
The response to the SEC’s decision was varied, particularly among government officials. Nevertheless, one undeniable reaction was observed in the case of Bitcoin’s price. BTC has consistently shown gains on the initial day of Spot ETF trading. Bitcoin’s value is expected to continue to increase as the next halving event approaches and more bank customers become familiar with Bitcoin ETFs.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Cynthia Lummis, Kirsten Gillibrand, Elizabeth Warren, Lindsey Graham, Patrick McHenry |
| Companies | Senate Banking Committee, Crypto News Flash, Securities and Exchange Commission, House Financial Services Committee, Bank Secrecy Act |
| Currencies | Bitcoin |
| Securities | None |
