The SEC Gives Its Blessing: Coincident Coins Can Get Your Eyes Weaving: The Case of Sam Bankman-Fried

For years, the SEC rejected applications from money managers, citing concerns about how bitcoin is valued and held. In the summer of 2018, the director of the SEC’s division of investment management wrote a letter to two industry groups questioning the effectiveness of spot bitcoins.

For some investors who have been sitting on the sidelines, that might be enough to take the plunge. In order to back their funds, companies that issue Exchange Traded Funds will have to buy matching amounts of digital currency.

Soon after, the U.S. government announced a multi-billion-dollar settlement with Binance and its founder, who pleaded guilty to violating anti-money-laundering laws.

The US Department of Justice won its case against Sam Bankman-Fried, a disgraced businessman who was sentenced to prison on charges that he engaged in securities fraud.

The account was compromised, and the SEC Commissioners had not made a decision. Hours later, X’s safety team confirmed the account was hacked, noting it didn’t have two-factor authentication enabled.

On Tuesday, a post from the SEC’s official account on X, the social media site formerly known as Twitter, appeared to indicate the agency had given spot bitcoin ETFs its blessing. It was almost immediately that the price went up by more than $1,000.

The Federal Reserve’s latest economic projections show policymakers think interest rates will be lowered in just over a decade. When interest rates are lower, investors are more comfortable making riskier bets.

The Securities and Financial Markets Commission says yes to bitcoin trusts, paving the way for more Americans to buy crypto: An opinion by Gensler

The company has operated a different kind of investment product, called a bitcoin trust, and it had asked the SEC for permission to convert that into an ETF. A judge ruled that the SEC’s rejection of that application was unfair.

Gary Gensler is the chair of the SEC, and he’s spent most of his tenure cracking down on it. Without new, crypto-specific from congress, he has asserted most cryptocurrencies are securities, and therefore, they fall under the SEC’s purview.

She wrote that there are a lot of investor protection issues that need to be looked at before retail investors can purchase these funds.

According to Henry Hu, who teaches banking and finance at the University of Texas Law School, the involvement of these big investment firms will burnish the perception of cryptocurrencies.

There is finally a point at which the Regulator will give us clear guidance in relation to what’s legal and what’s not.

The list of approved approved spot bitcoin ETFs includes some lesser-known investment firms, which primarily focus on cryptocurrencies. It also has several major money managers.

The SEC regulates exchange traded funds, and Wednesday’s decision by the agency is significant. Regulatory clarity is important, and so is the SEC’s imprimatur.

Source: U.S. says yes to new bitcoin funds, paving the way for more Americans to buy crypto

Cryptocurrencies Aren’t Solvable, But the SEC’s Decision Will Still Fail in the Light of Robust Wall Street Competition

He says that there is no sign up with a cripto exchange, wallet or private key. “It certainly will get bitcoin into more people’s hands.”

Bryan Armour, director of passive strategies research for North America at Morningstar, said the new funds are going to be seen as a safer way to buy and sell cryptocurrencies.

In the last couple of years, many websites have made it simpler for people to buy and sell cryptocurrencies. But according to McClurg, there are still big barriers to entry.

The SEC’s decision on cryptocurrencies will widen the appeal of them, according to Steven McClurg, the co-founders of Valkyrie Investments.

The massive run-up has come despite months of negative headlines, the successful prosecution of one of the biggest players in crypto, and after financial regulators and law enforcement targeted a long list of investors and promoters, executives and companies.