YEREVAN (CoinChapter.com) — US Senator Elizabeth Warren criticized the US Securities and Exchange Commission’s (SEC) recent decision to approve Bitcoin spot exchange-traded funds (ETF). While SEC Chair Gary Gensler claimed the decision came after certain pressure from Washington, Warren called the decision “wrong on the law and wrong on the policy.”
Senator Warren Warns SEC
Senator Warren saw the SEC’s actions as a sign of weakness, as allowing crypto assets to “burrow” further into the financial system could put users at risk. Warren is an outspoken crypto critic who has voiced a less-than-kind opinion on digital assets on several occasions.
More of Warren’s Democratic and Republican colleagues have joined her in signing the Digital Asset Anti-Money Laundering Act of 2022. Her initiative had already found favor among several lawmakers and organizations.
On the other hand, Chair Gensler claimed that he approved Bitcoin spot ETFs only in compliance with the law.
The U.S. Court of Appeals for the District of Columbia held that the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed ETP (the Grayscale Order). The court therefore vacated the Grayscale Order and remanded the matter to the Commission. Based on these circumstances and those discussed more fully in the approval order, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.
he commented.
What will Warren do about the decision?
Can the Senator Appeal the Decision?
As a US Senator, Elizabeth Warren has no authority to appeal or overturn decisions the SEC makes directly. That includes the approval of ETFs. The SEC is an independent federal agency responsible for enforcing federal securities laws and regulating the securities industry, including approving and regulating ETFs.
Senators like Elizabeth Warren can influence regulatory agencies through legislative actions, hearings, and public discourse, which she actively pursues. They may introduce or support legislation that impacts how these agencies operate or the regulations they enforce.
Additionally, Senator Warren can question the SEC and Gensler through committee hearings, holding them accountable.
However, the direct appeal or legal challenge to an SEC decision, such as the approval of an ETF, typically falls within the purview of parties directly affected by the decision, such as investors or market participants. These parties can challenge SEC decisions in court if they believe the decision violates the law or is arbitrary and capricious.
Therefore, Senator Warren can voice her concerns to the SEC, call for investigations, or push for legislative changes regarding the SEC’s actions. However, as an individual senator, she does NOT have the legal authority to appeal or directly overturn the SEC’s decisions.
