U.S. SEC commissioner: there is fraud in the cryptocurrency market

During a Senate Banking Committee nomination hearing on Thursday, U.S. Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw told senators that rampant fraud in the cryptocurrency market led to her reluctance to approve a bitcoin ETF earlier this year. In January, Crenshaw stood firm in her opposition to these exchange-traded products, pointing out that they were technically not ETFs, but rather exchange-traded products (ETPs) that operate under different rules. The commissioner said the agency's approval of the Bitcoin (BTC) products would "put us on a capricious path that could further sacrifice investor protections." Weighing whether it was in the public interest, she reiterated Thursday that she felt compelled to oppose the move "because of the serious fraud and lack of transparency in the underlying global spot market."