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Jim Cramer Thanks SEC Chairman For Standing Up To “Crypto Bullies” Seeking Approval Spot Bitcoin ETF Cryptocurrency

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 an exchange-traded fund (ETF) spot bitcoin. Cramer has repeatedly warned against the SEC’s crackdown on non-compliant crypto firms, urging investors to exit the asset class now.

Jim Cramer praises SEC Chairman Gary Gensler

CNBC’s Mad Money host Jim Cramer has thanked U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler for not approving a bitcoin exchange-traded fund (ETF) in cash. 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 bullies who wanted an ETF. They could have been blown to the kingdom 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 asked bankruptcy following an SEC court case alleging that 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 attempted to convert its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the securities watchdog 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 reject his bitcoin ETF application.

Additionally, Bloomberg reported earlier this month that the US Department of Justice’s (DOJ) Eastern District of New York and the SEC were investigating internal transfers between Genesis and DCG.

A lot of people disagree with Cramer

Many bitcoin supporters on Twitter disagreed with the Mad Money host. Lawyer John Deaton wrote: “So whoever favored a place BTC ETF is a tyrant? Cramer thinks people were protected by Gary Gensler NOT granting a spot ETF, even though BTC futures contracts and short ETFs exist. These companies have not had any problems because of bitcoin. Nate Geraci, President of ETF Shop opined:

I would say the exact opposite… The failure of the SEC to approve the spot ETF has led to an increase in GBTC arbitrage trading (where large accredited investors have taken advantage of retail trading). A significant portion of Genesis’ solvency issues stem from loans to 3AC, etc. to execute this arbitration transaction (which exploded).

Cramer has repeatedly warned against the SEC making a “roundup“non-compliant crypto firms, advising investors to get out of crypto now. “I Won’t Touch Crypto in a Million Years,” Mad Money Host stress. He often quoted John Reed Stark, former SEC internet law enforcement official, who recently said that a “regulatory assault is just beginning. Following the SEC lawsuit against Gemini and Genesis, Cramer tweeted, “Here comes the crackdown: Genesis and Gemini are first. We had a fabulous short run. Ka-ching. Ka-ching.

SEC criticized for its law enforcement-centric approach

While Cramer was appreciative of Gensler and the SEC, many people criticized the SEC Chairman for focusing on law 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 announcement charges vs. Gemini and Genesis: “Gary Gensler is once again down in the game, not ‘protecting’ anyone. It is abundantly clear that his policy strategy of “regulation by enforcement” is hurting ordinary Americans. In a follow-up tweet, the lawmaker wrote:

Gary Gensler, when can we expect proactive advice instead of letting the industry interpret the rules of the road through your after-the-fact 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 economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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