Scott Farnin, Legal Counsel, issued the following statement on the filing of Better Markets’ Comment Letters (found here and here) to the Securities and Exchange Commission (SEC) in response to multiple proposed rule changes filed by national securities exchanges to list and trade shares in spot bitcoin-based exchange traded products (“ETP”):
“The crypto industry’s track record is clear when it comes to consumers, investors, and financial stability. The industry has suffered $2 trillion in losses; multiple enforcement actions, bankruptcies, and criminal prosecutions; and dozens of lawsuits for lying, cheating, and stealing. Meanwhile, the principal beneficiaries of the crypto craze are the criminals who use it to facilitate ransomware, money laundering, and illegal conduct of all types. It is within this context that the SEC must evaluate latest wave of Bitcoin ETF filings this month.
“For years the SEC has rightfully rejected multiple attempts by national securities exchanges and sponsors to list and trade shares in spot bitcoin-based ETPs. Our comment letters urge the SEC to remain consistent with its previous orders disapproving such filings and reject the eight proposed rule changes pending before the agency.
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