The US Securities and Exchange Commission (SEC) halted Bitcoin advancement across the country with its enforced regulatory measures, as per the Grayscale Investments’ CEO. The Wall Street Journal recently published a letter in which the CEO remarked on the SEC’s role as well as its impact on the industry.
Grayscale CEO Condemns SEC’s One-Dimensional Approach for Stopping BTC’s Progress
He noted to have acknowledged a claim that the securities regulator was considerably late to prevent FTX’s bankruptcy and the crypto regulation. He added that this is due to the one-dimensional method of the regulatory agency for the regulation of cryptocurrency. Michael Sonnenshein, on his official Twitter account, remarked on the present operations of the securities regulator.
He is of the view that the SEC should attempt to eradicate the bad actors within the crypto world. However, he added, the regulator should not pose hurdles to the endeavors focused on forming adequate regulation. At present, Grayscale is confronting SEC by suing the regulator for refuting its Bitcoin trust’s transformation to a spot ETF (or exchange-traded fund).
As per Sonnenshein, the enforced regulation by the regulatory agency to prevent malicious actors from invading the crypto market has even stopped the advancement of Bitcoin into the regulatory perimeter of the United States. He said that this has compelled US investors to utilize the crypto businesses which operate offshore. As a result, they are not comprehensively protected and have deficient oversight.
Grayscale’s CEO disclosed that they are witnessing the result of the SEC’s preferences. The US investors are suffering to pay for the priorities set by the securities regulator. The opinion of Sonnenshein is witnessed at a time when Grayscale is suing the SEC for randomly refuting the strategy of Grayscale to transform its GBTC (or Grayscale Bitcoin Trust) to a spot exchange-traded fund.
It was argued by the SEC that the proposal of Grayscale did not adequately shield against manipulation and fraud. While responding to this, the platform stated that the regulator was making an illogical treatment with spot-traded goods as opposed to futures-traded products. The owner of Grayscale is Digital Currency Group (DCG) – a prominent crypto conglomerate that is presently experiencing diverse financial difficulties.
DCG additionally possesses the bankrupt company Genesis Trading. The SEC accused Genesis on the 12th of January of supposedly offering unregistered securities. A few days back, John Reed Stark (former SEC chairman and a crypto skeptic) criticized the use of word enforcement for the regulatory measures taken by the SEC.
He categorized this terminology to be a huge bogus catchphrase utilized by the crypto proponents.
In a post published on the 22nd of this month on LinkedIn, Reed noted that this is an ill-advised deflective endeavor structured to support the anti-regulatory mores. In his words, it was completely nonsensical. Reed argued that enforcement and litigation are the components of the operation of securities regulation. Grayscale submitted the lawsuit to confront the SEC back in 2022’s July.
A Crypto Trader Expresses Apprehensions over Grayscale’s Potential Collapse
Scott Melker – a crypto trader as well as the host of the podcast named “The Wolf of All Streets” – cautioned about Grayscale. He considers that the rare episode of Grayscale’s collapse would ignite a ripple effect throughout the crypto market. As per Melker, such an event will trigger a huge selling event specifically for the primary crypto asset Bitcoin (BTC).
