Elizabeth Warren Slams the SEC Spot Bitcoin ETF Approval

The Securities and Exchange Commission’s (SEC) decision to greenlight several Bitcoin spot exchange-traded funds (ETFs) has drawn sharp criticism from Senator Elizabeth Warren. 

The Massachusetts Democrat argued that the SEC was “wrong on the law and policy” in approving the new crypto products without stringent anti-money laundering rules in place.

Warren Slams SEC for Greenlighting Bitcoin ETF Products

Senator Elizabeth Warren strongly condemned the Securities and Exchange Commission’s (SEC) decision to approve Bitcoin spot exchange-traded funds (ETFs).

In a tweet, the Democratic lawmaker from Massachusetts stated, “The [SEC] is wrong on the law and wrong on the policy concerning the Bitcoin ETF decision.”

Warren’s criticism came in response to the SEC giving the green light to 11 new spot Bitcoin ETFs on January 10, 2024. This move marked a significant milestone for the crypto industry, with the new products generating over $4 billion in trading activity on their first day.

The Senator leveraged the ETF launch to reaffirm her position that cryptocurrencies should be subject to stricter regulations. “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 wrote.

Warren Renews Push for Anti-Money Laundering Rules

Warren has been championing anti-money laundering regulations for the crypto sector through her Digital Asset Anti-Money Laundering Act. The proposed legislation, which she reintroduced last October, has won support from 19 Senators across both parties.

While the bill has drawn criticism from some crypto industry participants over concerns about stifling innovation, Warren sees it as vital to preventing illicit financing if digital assets become further integrated into the financial system.

In addition to AML rules, the Senator has advocated for other measures to tighten oversight, such as imposing regulations on overseas crypto firms operating in the U.S. and increasing taxes on billionaires’ crypto gains.

Contrasting Response from Republican Lawmakers

Unlike Warren’s condemnation, Republican legislators welcomed the SEC’s approval of Bitcoin ETFs.

House Financial Services Committee Chairman Patrick McHenry (R-N.C.) and digital assets subcommittee leader French Hill (R-Ark.) released a statement praising the SEC’s decision. They wrote that while further legislative clarity is still required, “the steps taken today are a significant improvement over the SEC’s track record of regulation by enforcement.”

The split reaction highlights the ongoing partisan divide around cryptocurrency regulations in Washington. While most Democrats push for tighter controls, many Republicans want to foster crypto innovation with a lighter touch.

Conclusion

The SEC’s milestone approval of Bitcoin spot ETFs has prompted fresh debate about crypto oversight. Senator Elizabeth Warren argues the products should be halted without stricter anti-money laundering rules. 

In contrast, Republican lawmakers applaud the move to promote mainstream adoption. The divided response suggests crypto regulations will remain a contentious issue among legislators.

Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.