Mad Money host Jim Cramer thanked Securities and Exchange Commission (SEC) Chairman Gary Gensler for standing up to “crypto bullies” who want the regulator to approve an exchange-traded fund (ETF). ) of spot bitcoin. Cramer has repeatedly warned of the SEC cracking down on non-compliant crypto companies, urging investors to exit the asset class now.
Jim Cramer praises SEC Chairman Gary Gensler
CNBC’s Mad Money host Jim Cramer thanked US Securities and Exchange Commission (SEC) Chairman Gary Gensler for not approving a spot bitcoin exchange-traded fund (ETF). Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
The Mad Money host tweeted on Friday:
Thank you SEC head Gary Gensler for taking on the cryptocurrency bullies who wanted an ETF. They could have been brought to the kingdom by Genesis Global, which is now declaring bankruptcy.
Crypto lender Genesis Global Capital LLC is part of a subsidiary of venture capital firm Digital Currency Group (DCG). Genesis filed for bankruptcy following an SEC lawsuit alleging that the company and crypto exchange Gemini offered and sold unregistered securities to retail investors through the Gemini Earn crypto asset lending program.
Another DCG subsidiary is digital asset manager Grayscale Investments, which has been trying to turn its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the securities regulator has not approved the company’s filing. In June of last year, Grayscale filed a lawsuit against the SEC challenging the regulator’s decision to reject its bitcoin ETF application.
Additionally, Bloomberg reported earlier this month that the US Department of Justice (DOJ) Eastern District of New York and the SEC are doing research internal transfers between Genesis and DCG.
Many people disagree with Cramer.
Many bitcoin advocates on Twitter disagreed with the Mad Money host. Lawyer John Deaton wrote: “So anyone who favored a place BTC ETF is a bully? Cramer believes that Gary Gensler shielded people and did NOT give them a cash ETF, even though BTC there are futures and short ETFs. These companies didn’t get in trouble because of bitcoin.” Nate Geraci, President of the ETF Store opined:
I would say the exact opposite… The failure of the SEC to approve the spot ETF led to the rise of GBTC arbitrage trading (where large accredited investors took advantage of retail trading). A significant part of Genesis’s solvency problems stem from loans to 3AC etc. to execute that arbitrage trade (which blew up).
Cramer has repeatedly warned that the SEC is “rounding up” non-compliant crypto companies, advising investors to get out of crypto now. “I wouldn’t touch cryptocurrencies in a million years,” the Mad Money host stressed. He often quoted John Reed Stark, former SEC Internet enforcement chief, who recently said that “a regulatory attack is just beginning.” Following the SEC’s lawsuit against Gemini and Genesis, Cramer tweeted: “Here comes the crackdown: Genesis and Gemini are first. We have had a fabulous short race. Ka-ching. Ka-ching.
SEC criticized for its application-focused approach
While Cramer appreciated Gensler and the SEC, many people criticized the SEC chairman for focusing on enforcement and failing to take action to prevent the FTX catastrophe after several meetings with former FTX CEO Sam Bankman-Fried ( SBF).
Rep. Tom Emmer (R-MN) commented on Twitter last week after the SEC announced charges against Gemini and Genesis: “Gary Gensler is once again late to the game, ‘protecting’ nobody. It’s pretty clear that his ‘regulation via app’ political strategy hurts ordinary Americans.” In a follow-up tweet, the lawmaker wrote:
Gary Gensler, when can we expect proactive guidance instead of letting the industry interpret the rules of the road through their subsequent enforcement actions?
What do you think about Jim Cramer thanking SEC Chairman Gary Gensler? Let us know in the comments section.
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