Benzinga - As the trading day marked the debut of Bitcoin (CRYPTO: BTC) ETFs, Senator Elizabeth Warren (D-Mass.), took a stand against the Securities and Exchange Commission (SEC) approving BTC ETF.
What Happened: She said, "The [US Securities and Exchange Commission] is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision."
The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision.If the SEC is going to let crypto burrow even deeper into our financial system, then it's more urgent than ever that crypto follow basic anti-money laundering rules.
— Elizabeth Warren (@SenWarren) January 11, 2024
Warren’s response followed a milestone move by the SEC that saw the green-lighting of 11 new spot Bitcoin ETFs the previous day, generating upward of $4 billion in trading volume within their inaugural session.
Amidst substantial trading activity, Warren leveraged the moment to reaffirm her stance on imposing stricter regulations on the cryptocurrency sector. "If the SEC is going to let crypto burrow even deeper into our financial system, then it's more urgent than ever that crypto follow basic anti-money laundering rules," she said in the tweet.
Her Digital Asset Anti-Money Laundering Act, reintroduced in October, has since garnered backing from a bipartisan group of 19 Senators. While the bill faces criticism from parts of the crypto industry over concerns of hindering innovation and driving businesses away from U.S. soil, it remains a focal point in Warren’s legislative agenda.
Industry leaders have voiced their opinions in response to Warren’s critical remarks about Bitcoin ETFs. Among them, CEO of SkyBridge Capital Anthony Scaramucci questioned the motivations behind her stance, saying, “Who owns her? She didn't come in owned but now is bought and paid for. Who is it?”
Who owns her?She didn't come in owned but now is bought and paid for. Who is it? https://t.co/HEGmb9CKNV
— Anthony Scaramucci (@Scaramucci) January 11, 2024
In addition, Tyler Winklevoss weighed in on the legality of the SEC’s actions, pointing out their error, which was later rectified by the judiciary. “You're absolutely right that the @SECGov was wrong on the law and that's why the judiciary set them straight and left them with no choice but to approve Bitcoin ETFs. Pass a law if you don't like it, but you've only passed 1 your entire decade as a Senator so good luck with that!”
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Why It Matters: In contrast to Warren’s disapproval, the SEC’s announcement was met with commendation from Republican members.
Adding their thoughts to the discourse, House Financial Services Committee Chairman Patrick McHenry, R-N.C., and digital assets subcommittee leader French Hill, R-Ark., penned in a statement, "While legislation to provide clarity and certainty for digital assets remains necessary, the steps taken today are a significant improvement over the SEC's track record of regulation by enforcement."
#NEW: Chairman @PatrickMcHenry and Digital Assets, Financial Technology and Inclusion Subcommittee Chairman @RepFrenchHill release a statement regarding the @SECGov's spot Bitcoin ETF approvals.