The chief executive officer of the Grayscale fund manager said that SEC’s ‘one-dimensional’ approach is slowing Bitcoin’s progress.
Grayscale Investments is an American Cryptocurrency asset management company. Around 10 years ago, this company was founded and the current CEO of this company is Michael Sonnenshein. The Digital Currency Group (DCG) is the parent company behind Grayscale and in the recent months DCG came into limelight because of its bad financial positions in the market.
On 23 Jan 2023, The Wall Street Journal published a letter in which the Grayscale CEO talked about the Crypto regulation approach of the United States Securities and Exchange Commission (SEC).
Grayscale CEO said he admitted that the US Securities regulatory body was “late to the game” regarding crypto regulation and stopping the meltdown of Crypto companies like FTX.
Sonnenshein further added:
“‘Late’ doesn’t capture what transpired here. The problem is the Securities and Exchange Commission’s one-dimensional approach to regulation by enforcement.”
At present time, Grayscale is trying to impose regulatory pressure on the US SEC agency over the rejection of its application to convert the Grayscale fund $GBTC to the Grayscale Bitcoin spot ETF.
According to Grayscale CEO, the US Securities regulatory body would surely kick out the bad actors from the crypto sector but not slow down the innovations in the sector through regulatory pressure.
Reportedly, the SEC agency responded on this matter and repeated a similar kind of statement, which was passed by the agency when the GBTC to Bitcoin spot ETF conversion application was rejected.
As per the Securities regulatory body’ point of view, Grayscale Bitcoin spot ETF was not protected against price manipulation & fraud-like activities. On the other hand, Grayscale is fighting against the SEC agency as SEC approved Bitcoin Futures ETFs applications but continuously rejected Bitcoin spot ETFs applications,wichh are safer than futures products.