Jim Cramer thanks SEC chairman for standing up to ‘crypto thugs’ seeking approval of spot Bitcoin ETF – Regulation Bitcoin News

Mad Money host Jim Cramer thanked Securities and Exchange Commission (SEC) Chairman Gary Gensler for standing up to “crypto thugs” who want the regulator to approve a spot bitcoin exchange-traded fund (ETF). Cramer has repeatedly warned of the SEC cracking down on non-compliant crypto companies, urging investors to exit the asset class immediately.

Jim Cramer praises SEC Chairman Gary Gensler

CNBC’s Mad Money host Jim Cramer thanked 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 Chief Gary Gensler for standing up to the crypto thugs who wanted an ETF. He could have taken them to the kingdom of Genesis Global, which is now filing for 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 complaint alleging that the company and the Gemini crypto exchange 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 is trying to turn its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the securities watchdog did not approve the company’s filing. In June of last year, Grayscale filed a lawsuit against the SEC challenging the regulator’s decision to reject its application for a bitcoin ETF.

In addition, Bloomberg reported earlier this month that the US Department of Justice’s (DOJ) Eastern District of New York and the SEC are investigating internal transfers between Genesis and DCG.

Many people disagree with Cramer

Many bitcoin advocates on Twitter disagreed with the Mad Money host. Attorney John Deaton wrote: “So anyone who favored the spot BTC ETF is a thug? Cramer believes people were protected by Gary Gensler who did NOT approve spot ETFs, even though BTC futures and short ETFs exist. Those companies didn’t get into trouble because of bitcoin.” ETF Store President Nate Geraci expressed an opinion:

I would argue the exact opposite… SEC failure to approve the spot ETF led to the rise of the GBTC arbitrage trade (where large accredited investors took advantage of the retail trade). A significant part of Genesis’ solvency problems stemmed from lending to 3AC etc to execute that arbitrage trade (which blew up).

Cramer has repeatedly warned that the SEC is doing a “roundup” of unruly crypto companies, advising investors to get out of cryptocurrencies immediately. “I wouldn’t touch crypto in a million years,” stressed the Mad Money host. He often quoted John Reed Stark, the SEC’s former head of Internet enforcement, who recently said that “the regulatory onslaught is just beginning.” Following the SEC’s filing against Gemini and Genesis, Cramer tweeted: “Here’s the breakdown: Genesis and Gemini are first. We had a fantastic short streak. Ka-ching. Ka-ching.”

SEC criticized for enforcement-oriented approach

Although Cramer appreciated Gensler and the SEC, many people 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 charges against Gemini and Genesis: “Gary Gensler is once again late to the game, not ‘protecting’ anyone. It is abundantly clear that his political strategy of ‘regulation through enforcement’ is hurting everyday Americans.” In the following tweet, the MP wrote:

Gary Gensler, when can we expect proactive leadership instead of leaving the industry to interpret the rules of the road through your subsequent enforcement actions?

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What do you think about Jim Cramer thanking SEC Chairman Gary Gensler? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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