Mad Money host Jim Cramer thanked Securities and Exchange Commission (SEC) Chairman Gary Gensler for standing up for “crypto disruptors” who want regulators to approve bitcoin exchange-traded funds (ETFs). Cramer has repeatedly warned about the SEC cracking down on non-compliant crypto companies, urging investors to get out of the asset class now.
Jim Cramer Praises SEC Chairman Gary Gensler
The host of CNBC’s Mad Money show, Jim Cramer, thanked the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, for not approving a bitcoin exchange-traded fund (ETF). Cramer is a former hedge fund manager who 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 want ETFs. He may have been blown to kingdom come by Genesis Global, now filing for bankruptcy.
Crypto lender Genesis Global Capital LLC is part of the venture capital subsidiary Digital Currency Group (DCG). Genesis submitted to insolvent following the SEC lawsuit stated that the Gemini crypto company and exchange offers and sells unregistered securities to retail investors through the Gemini Earn crypto asset lending program.
Another DCG subsidiary is digital asset manager Grayscale Investments, which has been trying to turn its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the securities watchdog has yet to approve the company’s filing. In June last year, Grayscale filed a lawsuit against the SEC challenged 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 investigate internal transfer between Genesis and DCG.
Many People Disagree with Cramer
Many bitcoin supporters on Twitter disagreed with the Mad Money host. Attorney John Deaton write: “That’s why anyone chooses a place BTC Is ETF a bully? Cramer believes people protected by Gary Gensler do not give ETF points, though BTC futures and short ETFs exist. These companies are not in trouble because of bitcoin. ETF Store President Nate Geraci my opinion:
I argue exactly the opposite… SEC failure to approve the point ETF led to the rise of GBTC arbitrage trade (where large accredited investors take advantage of the store). A significant part of Genesis’ solvency problems stemmed from debt to 3AC, etc. to execute these arbitrage trades (which exploded).
Cramer has repeatedly warned about the SEC doing “roundup” from non-compliant crypto companies, advising investors get out of crypto now. “I would never touch crypto in a million years,” Mad Money host rigid. He often cites John Reed Stark, the SEC’s former head of internet enforcement, who recently said “regulatory attack just started.” After the SEC’s lawsuit against Gemini and Genesis, Cramer tweeted: “Here it is: Genesis and Gemini first. We’ve had a great squeeze run. Ka-ching. Ka-ching.”
SEC Slammed for Enforcement-Centric 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 some meetings with former FTX CEO Sam Bankman-Fried (SBF).
Congressman Tom Emmer (R-MN) commented on Twitter last week after the SEC announced cost to Gemini and Genesis: “Gary Gensler is once again late to the game, ‘protecting’ nobody. It’s clear that his political ‘regulation over enforcement’ strategy is hurting every American. In a follow-up tweet, the lawmaker wrote:
Gary Gensler, when can we expect proactive guidance instead of leaving the industry to interpret the rules of the road through after-the-fact enforcement actions?
What do you think about Jim Cramer thanking SEC Chairman Gary Gensler? Let us know in the comments section below.
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