Grayscales chief was the latest to take a swing at the authority for its so-called regulation by enforcement actions. 4028 Total views 58 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT The approach to crypto regulatory enforcement by the United States Securities and Exchange Commission (SEC) has stalled the advancement of Bitcoin (BTC) in the country, according to the CEO of Grayscale Investments.
In a letter published in The Wall Street Journal on Jan. 23, the chief of the cryptocurrency asset management firm, Michael Sonnenshein, said he agreed with an assertion that the SEC was late to the game regarding crypto regulation and preventing the bankruptcy of FTX, adding:Late doesnt capture what transpired here. The problem is the Securities and Exchange Commissions one-dimensional approach of regulation by enforcement.
Grayscale is currently suiting the SEC for denying the conversion of its Bitcoin trust to a spot-basedexchange-traded fund (ETF).
He clarified the SEC should certainly try to eliminate bad actors but it shouldnt hinder efforts to develop appropriate regulation.
Doing our part to re-instill trust and confidence in #bitcoin and #crypto cc @Grayscale @CraigSalm @jenn_rosenthal $GBTC pic.twitter.com/u72RHmGTmJ Sonnenshein (@Sonnenshein) January 23, 2023
The inaction by the regulator to stop such bad actors from entering the crypto industry prevented Bitcoins advancement into the U.S. regulatory perimeter, Sonnenshein wrote.
This has forced American investors to use offshore crypto businesses with less protection and oversight, he said.We are seeing the consequences of the SECs priorities play out in real-time at the expense of U.S. investors.
Cointelegraph has reached out to the Securities and Exchange Commission for comment.
Sonnensheins opinion piece comes as Grayscale is suing the SEC for having arbitrarily denied Grayscales plans to convert its Grayscale Bitcoin Trust (GBTC) to a spot ETF.
The SEC arguedthat Grayscales proposal did not sufficiently protect against fraud and manipulation. Grayscale countered by sayingthat the SEC was arbitrarily treating spot-traded products differently from futures-traded products.
Grayscale is owned by the crypto conglomerate Digital Currency Group (DCG), which is currently undergoing financial difficulties.
DCG also owns the bankrupt Genesis Trading, which was charged by the SEC on Jan. 12 for allegedly selling unregistered securities.
Related: SEC leaked crypto miners personal information during investigation: Report
Over the weekend, John Reed Stark, a crypto skeptic and former SEC chief,lambasted the term regulation by enforcement, labeling it a Bogus Big Crypto Catch Phrase.
In a Jan. 22 post on Linkedin, he said the term was a misguided, deflective effort designed to tap into sympathetic libertarian and anti-regulatory mores, and called it utter nonsense.
He argued that litigation and SEC enforcement are actually how securities regulation works. #SEC #ETF #Bitcoin Regulation #United States #Grayscale #Regulation Related News How to store Bitcoin on MetaMask US authorities to intensify scrutiny of crypto industry in 2023 Samsung investment arm considering spot-Bitcoin ETF in Hong Kong Grayscale files brief in ETF suit against SEC, oral arguments may come within months The aftermath of LBRY: Consequences of cryptos ongoing regulatory process
