The myth of buying bitcoin and altcoins has repeatedly warned that the SEC is putting pressure on noncompliant crypto companies. As Kriptokoin.com, we have compiled the comments made by the famous presenter Jim Cramer for you.
Jim Cramer praises SEC chairman Gary Gensler
Jim Cramer, host of CNBC’s Mad Money show, thanked Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), for not approving a spot bitcoin exchange-traded fund (ETF). Genesis has 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 loan program.
Another DCG subsidiary is digital asset manager Grayscale Investments, which is trying to turn its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the securities watchdog did not approve of the company’s filing. In June last year, Grayscale filed a lawsuit against the SEC, which appealed against the regulator’s decision to reject the bitcoin ETF application.
In addition, Bloomberg reported earlier this month that the US Department of Justice (DOJ) Eastern District of New York and the SEC are investigating internal transfers between Genesis and DCG.
Many people disagree with the Bitcoin commentator
Many bitcoin advocates on Twitter disagreed with the Mad Money host. Attorney John Deaton said, “So everyone who opts for a spot BTC ETF is a bully? Cramer believes that although there are BTC futures and short ETFs, people are protected by Gary Gensler, who does NOT issue a spot ETF. These companies didn’t get in trouble because of bitcoin.” said. Nate Geraci, Head of ETF Store, said:
“I would argue the opposite… SEC disapproval of the spot ETF resulted in increased GBTC arbitrage trading (where large accredited investors benefited from retail). A significant part of Genesis solvency issues is relying on 3AC etc to execute this arbitrage trade (exploding). comes from lending.”
Cramer has repeatedly warned that the SEC is holding a ‘collection’ of noncompliant crypto firms and has advised investors to exit crypto immediately. “I wouldn’t have touched cryptocurrencies in a million years,” stressed the Mad Money host.
He often quoted John Reed Stark, the SEC’s former head of internet enforcement, as he recently said that ‘a regulatory attack has just begun’. Following the SEC lawsuit against Gemini and Genesis, Cramer said, ‘Here comes the pressure: Genesis and Gemini first. We had a great short cramped run.” said.
SEC slammed for practice-oriented approach
While Cramer praised Gensler and the SEC, many criticized the SEC chairman for focusing on enforcement and not taking action to prevent the FTX disaster after several meetings with former FTX CEO Sam Bankman-Fried (SBF).
Congressman Tom Emmer (R-MN) commented on Twitter last week after the SEC announced the charges against Gemini and Genesis: ‘Gary Gensler is once again late to the game, he’s not ‘protecting’ anyone. It’s pretty clear that the political ‘regulation by sanction’ strategy is hurting ordinary Americans.’ In a follow-up tweet, the lawmaker wrote:
“Gary Gensler, when can we expect proactive guidance rather than leaving the industry to interpret the rules of the road through your post-incident enforcement actions?”
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