SEC Intensifies Crypto Enforcement Under Gensler as Bitcoin ETFs Soar; Ethereum ETFs Await Approval
Summary:
Under the leadership of Gary Gensler, the U.S. Securities and Exchange Commission (SEC) has significantly ramped up crypto-related enforcement actions, reveals a Cornerstone Research report. In just seven days, nine spot Bitcoin ETFs managed to accumulate 100,000 Bitcoin, a feat that took MicroStrategy nearly 300 days. Additionally, SEC Commissioner Hester Peirce suggests that Ethereum ETFs should not require legal action for approval.
A recent study reveals that under the leadership of Gary Gensler, the U.S. Securities and Exchange Commission (SEC) has significantly increased its enforcement actions relating to cryptocurrencies. Interestingly, in a span of 7 days, 100,000 Bitcoin were accumulated by nine spot Bitcoin ETFs, a milestone that took MicroStrategy nearly 300 days to achieve. Hester Peirce, also known as "Crypto Mom", suggests that Ethereum ETFs shouldn't require lawsuits for approval.
A concurrent report released in January 24 by Cornerstone Research confirms a considerable rise in crypto-related enforcement actions by the SEC since Gensler took charge. In 2023 solely, the SEC instituted a striking 46 enforcement cases against cryptocurrency firms, more than twice as compared to the previous year. This represents a decade-high in enforcement actions.
Among other noteworthy cases, the SEC's increased vigilance has brought renowned cryto exchanges such as Binance, Coinbase, and Kraken, and blockchain projects like Terraform Labs and Ripple under scrutiny. The proceedings of these cases are still underway.
After their launch, nine spot Bitcoin ETFs accumulated 100,000 Bitcoin in just a week. Comparatively, it took MicroStrategy approximately 300 days to reach this same benchmark. Accumulating 102,613 Bitcoin in the initial week post trading launch on January 11, nine spot Bitcoin ETFs consisting of iShares Bitcoin Trust by BlackRock and Wise Origin Bitcoin Fund by Fidelity demonstrated phenomenal buying power.
These spot Bitcoin ETFs managed to obtain 53% of MicroStrategy's total Bitcoin holdings in just seven days of trading. By December 26, 2023, MicroStrategy had amassed a total of 189,150 Bitcoin according to its latest Bitcoin acquisiton report.
In other news, Hester Peirce, affectionately known as "Crypto Mom", asserted that Ethereum ETFs shouldn't require court intervention for approval by the U.S. Securities and Exchange Commission. She reminded that a past court reversal involving Grayscale paved the way for Bitcoin ETFs, inferring that the SEC would probably consider this ruling in it's decision-making process. However, she did accept that each ETF application comes with its unique set of facts and circumstances.
By 23rd May, the SEC is required to determine the fate of VanEck's Ethereum ETF application. As per industry analysts, similar bids by BlackRock, Invesco Galaxy, ARK 21Shares, Fidelity, Grayscale, and Hashdex are also likely to get greenlit simultaneously.
Please note that this article is not intended as investment advice or recommendations. Investing and trading inherently involve risks, and it is recommended that readers conduct their own research prior to making any decision.
Published At
1/24/2024 11:09:16 PM
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