• Jim Cramer, host of Mad Money, thanked SEC Chairman Gary Gensler for not approving a spot bitcoin exchange-traded fund (ETF).
• The SEC has been challenged by crypto firms such as Genesis Global Capital LLC and Grayscale Investments for its refusal to approve a bitcoin ETF.
• Cramer has repeatedly warned investors about the SEC’s crackdown on crypto companies, urging them to exit the asset class.
Jim Cramer, the host of CNBC’s Mad Money show, has voiced his support for the Securities and Exchange Commission (SEC) and its Chairman Gary Gensler for standing up to the „crypto bullies“ who want the regulator to approve a spot bitcoin exchange-traded fund (ETF). Cramer made his remarks on Friday via a tweet, stating: „Thank you, SEC Chief Gary Gensler for standing up to the crypto bullies who wanted an ETF. They could have been blown to kingdom come by Genesis Global, now filing for bankruptcy.“
The reference to Genesis Global Capital LLC was in relation to the recent SEC lawsuit against the crypto firm, alleging that the company and crypto exchange Gemini offered and sold unregistered securities to retail investors through the Gemini Earn crypto asset lending program. Genesis was part of a subsidiary of venture capital firm Digital Currency Group (DCG).
Another DCG subsidiary is digital asset manager Grayscale Investments, which has been trying to convert its flagship Bitcoin Trust (GBTC) into a spot bitcoin ETF. However, the SEC has not approved the company’s filing. In June last year, Grayscale filed a lawsuit against the SEC challenging the regulator’s decision to reject its bitcoin ETF application.
Jim Cramer has been warning investors about the SEC’s crackdown on crypto companies, urging them to exit the asset class. Earlier this month, the Mad Money host tweeted: „My advice to everyone is to stay away from cryptocurrencies. The SEC is cracking down on the crypto bull market and you don’t want to be in the crosshairs.“
Cramer’s thank you to SEC Chairman Gary Gensler is unlikely to change the regulator’s stance on crypto firms, but it does show that there are some in the financial industry who are willing to stand up for the SEC’s decision and applaud the chairman’s efforts in trying to protect consumers from the potential risks associated with investing in crypto assets.