The U.S. Securities and Exchange Commission’s (SEC) approach to tightening regulation of cryptocurrencies has stalled the progress of Bitcoin (Bitcoin), according to the CEO of Grayscale Investments, in the country.
so letter In an article published in The Wall Street Journal on Jan. 23, CEO of crypto asset management firm Michael Sonnenschein says the SEC is “behind the game” on crypto regulation. He said he agreed with the allegations. Prevent FTX bankruptcy,addition:
“‘Late’ doesn’t capture what happened here. The problem is the SEC’s one-sided approach to regulation by enforcement.”
Grayscale is now suing the SEC for refusing to convert Bitcoin trust into a cryptocurrency. spot base Exchange Traded Funds (ETFs).
He clarified that the SEC “should certainly try to keep bad guys out” but shouldn’t hinder “efforts to formulate appropriate regulations”.
— Sonnenshein (@Sonnenshein) January 23, 2023
According to Sonnenschein, regulators’ failure to stop such bad actors from entering the cryptocurrency industry “prevented bitcoin’s foray into the U.S. regulatory boundary.” That’s what I mean.
This forced American investors to offshore their cryptocurrency business “with insufficient protection and oversight.”
“We are watching the results of the SEC’s priorities unfold in real time — at the expense of US investors.”
Cointelegraph has reached out to the Securities and Exchange Commission for comment.
Sonnenshein’s opinion is part of an ongoing lawsuit between Grayscale and the SEC for “arbitrarily denying” Grayscale’s data. plan to convert Convert that Grayscale Bitcoin Trust (GBTC) to a spot ETF.
of SEC claimed Grayscale’s proposal did not adequately prevent fraud and manipulation. grayscale counter The SEC said it had arbitrarily treated spot-traded products differently from futures-traded products.
Grayscale is owned by the digital currency conglomerate Digital Currency Group (DCG). in progress Financial difficulties.
DCG also owns the bankrupt Genesis Trading. charged by the SEC On January 12, suspected of selling unregistered securities.
Over the weekend, crypto skeptic and former SEC Commissioner John Reed Stark condemned the term “Regulation by Coercion” and labeled as “Fake Big Crypto Tagline”.
In a January 22 Linkedin post, he called the term “a misguided and biased effort designed to capitalize on sympathetic libertarian and anti-regulatory conventions” and described it as “absolute nonsense.” said there is.
He argued that “litigation and SEC enforcement are really how securities regulation works.”