Jim Cramer Thanks SEC Chairman for Standing Up to “Crypto Bullies” Seeking Spot Bitcoin ETF Approval – Bitcoin News Settlement

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

Jim Cramer commends SEC Chairman Gary Gensler

Host of CNBC’s Mad Money show Jim Cramer thanked US Securities and Exchange Commission (SEC) chairman Gary Gensler for failing to approve 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 crypto bullies who wanted an ETF. They may have been brought into the realm by 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 lawsuit alleging that the company and cryptocurrency exchange Gemini were offering and selling unregistered securities to retail investors through the Gemini Earn cryptocurrency lending program.

Another subsidiary of DCG is digital asset manager Grayscale Investments, which has been looking to convert its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the securities regulator 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 deny its application for bitcoin ETFs.

Additionally, 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 supporters on Twitter disagreed with the Mad Money host. Attorney John Deaton he wrote: “So whoever favored a spot BTC ETF is a bully? Cramer believes people were protected by Gary Gensler by NOT granting a spot ETF, even though BTC futures and short ETFs do exist. These companies didn’t get in trouble because of bitcoin.” Nate Geraci, president of ETF Store he opined:

I would say just the opposite… The SEC’s failure to approve the spot ETF led to the rise of GBTC arbitrage trading (where large accredited investors took advantage of the retail). A significant portion of Genesis’s solvency issues stem from the loan to 3AC, etc. To perform that arbitrage operation (which exploded).

Cramer has repeatedly warned that the SEC is “raiding” non-compliant crypto firms, advising investors to get out of cryptocurrencies now. “I wouldn’t touch cryptocurrencies in a million years,” the Mad Money host pointed out. You have often quoted John Reed Stark, the SEC’s former head of Internet enforcement, who recently said that “the regulatory assault has only just begun.” Following the SEC lawsuit against Gemini and Genesis, Cramer tweeted: “Here comes the crackdown: Genesis and Gemini are first. We had a fabulous short ride. Ka-ching. Ka-ching.”

The SEC has criticized the enforcement-focused approach

While Cramer liked Gensler and the SEC, many people criticized the SEC chairman for focusing on enforcement and failing to take action to prevent the FTX catastrophe 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, ‘protecting’ no one. It’s pretty clear that his policy strategy of “regulating through enforcement” harms everyday Americans.” In a follow-up tweet, the lawmaker wrote:

Gary Gensler, when can we expect proactive driving instead of letting the industry interpret the rules of the road through your post enforcement actions?

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

Kevin Helms

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

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