TLDR
- Jim Cramer asked SEC Chair Gary Gensler about the possibility of ETFs for various cryptocurrencies, including BONK, based on their trading volumes.
- Gensler expressed concerns about the lack of disclosure and regulation in the crypto market, suggesting that ETFs for these tokens are unlikely until proper oversight is in place.
- The SEC Chair highlighted issues with crypto exchanges, comparing their practices to those that would not be allowed on traditional stock exchanges.
- Gensler’s response suggests that with proper regulation, a wider range of cryptocurrency ETFs might be possible in the future.
- Despite Cramer’s enthusiasm, the SEC remains cautious about approving ETFs for lesser-known cryptocurrencies, with Bitcoin being the primary focus for now.
In a recent interview on CNBC’s “Mad Money,” host Jim Cramer grilled SEC Chair Gary Gensler on the possibility of introducing exchange-traded funds (ETFs) for various cryptocurrencies, including the Solana-based memecoin BONK. Cramer’s line of questioning was based on the premise that if a cryptocurrency has a significant trading volume, it should be eligible for an ETF.
Cramer rattled off a list of tokens, such as Polkadot, Cardano, Cosmos, Immutable, Ronin, Bonk, Osmosis, SushiSwap, and My Neighbor Alice, all of which he claimed had traded millions of dollars on the morning of the interview.
He then asked Gensler whether there should be ETFs for these cryptocurrencies, singling out BONK and Osmosis as potential candidates.
Gensler’s response was, as usual, less than enthusiastic.
The SEC Chair sidestepped the question and instead focused on the broader issues plaguing the crypto market. Gensler pointed out that many of these tokens have not provided investors with the necessary disclosures required by law to make informed investment decisions.
The year is 2024
Jim Cramer is asking Gary Gensler if we should have a BONK ETF on CNBC
this is real life pic.twitter.com/5zyCzDZwAq
— gaut (@0xgaut) June 5, 2024
Gensler expressed concerns about the practices of crypto exchanges, stating that they engage in activities that would never be allowed on traditional stock exchanges like the New York Stock Exchange. He emphasized the need for proper regulation to protect against fraud and manipulation.
While Gensler’s response may seem discouraging for those genuinely hoping for a BONK ETF, it does suggest that with adequate regulation, a wider range of cryptocurrency ETFs could be possible in the future, starting with ETH next.
However, the SEC Chair’s comments make it clear that the crypto market has a long way to go before it can be considered on par with traditional financial markets in terms of transparency and oversight.
