SEC Commissioner Caroline Crenshaw has criticized the approval of Bitcoin-based investment vehicles, calling the move “unhealthy and outdated.” She expressed concerns about the potential for fraud and manipulation in the spot Bitcoin markets, which could impact the retirement accounts of American households least able to afford such risks.
Nonprofit organization Better Markets echoed these sentiments, arguing that Bitcoin and cryptocurrencies lack legitimate use and cater to speculators and criminals. The group insisted that the SEC’s recent actions have not changed the fundamental issues associated with these financial products.
Better Markets CEO Dennis Kelleher recently urged the SEC to reject Bitcoin ETF applications, suggesting they could lead to significant investor harm. Cryptocurrency critic Stephen Diehl commented that Bitcoin represents a return to outdated and discredited ideas.
Gold advocate and Bitcoin critic Peter Schiff added his voice to the debate, stating that the approvals merely create new avenues for speculators to invest in Bitcoin. Crypto researcher Chris Blec warned that institution-focused ETFs could ultimately damage the decentralized nature of the Bitcoin network.
The concerns highlight the ongoing debate over the integration of Bitcoin into mainstream financial products and the regulatory challenges associated with the emerging cryptocurrency market.