Odaily News: Non-profit organization Better Markets has stated in a letter that the U.S. Securities and Exchange Commission (SEC) should reject recent applications for a large number of physically-backed Bitcoin exchange-traded funds (ETFs) due to concerns of potential harm to investors.



Stephen Hall, the legal director and securities expert at Better Markets, commented in a statement on Wednesday that the cryptocurrency industry has already suffered $2 trillion in losses, numerous enforcement actions, bankruptcies, lawsuits, and criminal prosecutions.



Hall explained, "Meanwhile, the primary beneficiaries of the cryptocurrency frenzy are criminals who utilize cryptocurrencies for ransomware, money laundering, and various illicit activities. It is against this backdrop that the SEC must evaluate the latest wave of Bitcoin ETF applications this month."



Better Markets submitted two letters on Tuesday that specifically commented on eight applications for physically-backed Bitcoin ETFs. Hall stated, "Our comment letters urge the SEC to maintain consistency with its prior orders denying such applications and reject the eight proposed rule changes currently before the agency."



The companies that have submitted the applications have designated Coinbase as their designated monitoring shared partner to help address regulatory concerns about market manipulation.



Although Coinbase operates globally, Better Markets stated that only "a small fraction" of Bitcoin spot trading occurs on Coinbase.



Hall commented in a letter, "Therefore, relying on an exchange that accounts for only a small fraction of the total Bitcoin trading volume to supervise a commodity notorious for being subject to money laundering and manipulation offers little value in detecting or preventing manipulation of Bitcoin spot ETPs."



Better Markets also pointed out that Coinbase is not registered with the SEC or the Commodity Futures Trading Commission (CFTC) and mentioned its legal dispute with the SEC. (The Block)