Senator Elizabeth Warren has taken to X to express her displeasure with the Securities and Exchange Commission’s decision to approve eleven Bitcoin exchange-traded funds (ETFs). These funds started trading today after being approved yesterday, experiencing solid trading demand.
Warren, a policymaker who is no fan of Fintech innovation, declared:
“The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision. If the SEC is going to let crypto burrow even deeper into our financial system, then it’s more urgent than ever that crypto follow basic anti-money laundering rules.”
The statement ignores the fact that these ETFs are highly regulated securities, and sponsors must adhere to strict AML/KYC rules. In fact, any crypto exchange operating in the US must adhere to AML/KYC rules – similar to banks. While there are bad actors beyond the borders of the US – this holds true for other financial services firms too.
At the same time, technology now exists to trace almost all crypto transactions – something the Feds are using, which has a chilling effect on nefarious activities with crypto, and cash remains the preferred methodology for evading the law.
Another interesting aspect of the Senator’s statement is the fact she has been one of SEC Chairman Gary Gensler’s biggest proponents on the Hill. Perhaps there is a chill in the air?