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Mad Money host Jim Cramer has 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 that the SEC is cracking down on non-compliant crypto firms, and is urging investors to get out of the asset class now.
CNBC’s Mad Money show host Jim Cramer has thanked US Securities and Exchange Commission (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. They could have been blown to riches 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 that alleged the company and crypto exchange Gemini 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 has tried to convert its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the Securities and Exchange Commission has not approved the company’s submission. Last June, Grayscale filed a lawsuit against the SEC challenging the regulator’s decision to reject its bitcoin ETF application.
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 bitcoin followers on Twitter disagreed with the Mad Money host. Attorney John Deaton wrote: “So everyone who favored a spot BTC ETF is a bully? Cramer thinks people were protected by Gary Gensler NOT providing a spot ETF, even though BTC futures and short ETFs exist. These companies didn’t get into trouble because of bitcoin.” ETF Store President Nate Geraci meant:
I would argue the opposite… The failure of the SEC to approve spot ETFs led to the rise of GBTC arbitrage trading (where large accredited investors took advantage of retail trading). Meaningful part of Genesis solvency problems stemmed from lending to 3AC etc to do that arbitrage trade (which blew up).
Cramer has repeatedly warned that the SEC is doing a “roundup” of non-compliant crypto firms and advised investors to get out of crypto now. “I wouldn’t touch crypto in a million years,” the Mad Money host stressed. He often quoted John Reed Stark, the SEC’s former head of Internet enforcement, as recently saying that a “regulatory onslaught is just beginning.” After the SEC filing against Gemini and Genesis, Cramer tweeted: “Here’s the kicker: Genesis and Gemini are first. We have had a wonderful short squeeze trip. Ka-ching. Ka-ching.”
While Cramer praised Gensler and the SEC, many people have criticized the SEC chief 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, ‘protecting’ no one. Quite clearly his political ‘regulation through enforcement’ strategy is hurting ordinary Americans.” In a follow-up tweet, the lawmaker wrote:
Gary Gensler, when can we expect proactive guidance instead of letting the industry interpret the rules of the road through your subsequent enforcement actions?
What do you think of Jim Cramer thanking SEC Chairman Gary Gensler? Let us know in the comments section below.
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