According to ChainCatcher, the non-profit organization Better Markets pointed out in a letter submitted that the U.S. SEC should reject a large number of recent spot Bitcoin ETF applications because they may harm investors.

Stephen Hall, legal director and securities expert at Better Markets, said in a statement on Wednesday that the crypto industry has suffered $2 trillion in losses, multiple law enforcement actions, bankruptcies, lawsuits and criminal prosecutions, and said that "the main beneficiaries of the crypto boom are criminals who use cryptocurrencies to carry out ransomware, money laundering and a variety of illegal activities."

The various companies that filed the applications have named Coinbase as a surveillance-sharing partner to help ease regulators’ concerns about market manipulation. Better Markets also noted that Coinbase is not registered with the SEC or the Commodity Futures Trading Commission, while noting that it has a legal dispute with the SEC.