The U.S. Securities and Exchange Commission (SEC) is late in implementing regulation of the crypto industry and follows a one-dimensional approach in relation to it. Such an opinion expressed Grayscale Investments CEO Michael Sonnenschein.
In a letter published by The Wall Street Journal, he noted that the department’s policies did not help him protect investors from the collapse of FTX. In this case, it was enough for the SEC to resort to public warnings, without having clear rules regarding crypto exchanges, Sonnenschein believes.
“The word “late” does not quite reflect the essence of what happened. The problem lies in the one-dimensional approach of the Commission to regulation through law enforcement practices,” said the head of Grayscale.
He recalled that the SEC rejected the company’s application to convert the flagship bitcoin trust into a spot ETF. Sonnenschein called this decision of the regulator “baseless” against the backdrop of the approval of exchange-traded funds based on cryptocurrency futures. Grayscale challenged the Commission’s position in court.
“The inaction of the SEC has prevented bitcoin from moving into the US regulated perimeter, often forcing US investors to use overseas trading platforms with weak protection and oversight,” Sonnenschein said.
In November 2022, amid the collapse of FTX, there were rumors of liquidity problems with Grayscale’s parent company Digital Currency Group (DCG). Its other “daughter”, Genesis Global, has suspended the withdrawal of funds and the issuance of loans.
In January 2023, the crypto lending platform filed for bankruptcy.
Recall that Bernstein analysts admitted that in order to solve financial problems, DCG could liquidate the Grayscale bitcoin trust.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
The U.S. Securities and Exchange Commission (SEC) is late in implementing regulation of the crypto industry and follows a one-dimensional approach in relation to it. Such an opinion expressed Grayscale Investments CEO Michael Sonnenschein.
In a letter published by The Wall Street Journal, he noted that the department’s policies did not help him protect investors from the collapse of FTX. In this case, it was enough for the SEC to resort to public warnings, without having clear rules regarding crypto exchanges, Sonnenschein believes.
“The word “late” does not quite reflect the essence of what happened. The problem lies in the one-dimensional approach of the Commission to regulation through law enforcement practices,” said the head of Grayscale.
He recalled that the SEC rejected the company’s application to convert the flagship bitcoin trust into a spot ETF. Sonnenschein called this decision of the regulator “baseless” against the backdrop of the approval of exchange-traded funds based on cryptocurrency futures. Grayscale challenged the Commission’s position in court.
“The inaction of the SEC has prevented bitcoin from moving into the US regulated perimeter, often forcing US investors to use overseas trading platforms with weak protection and oversight,” Sonnenschein said.
In November 2022, amid the collapse of FTX, there were rumors of liquidity problems with Grayscale’s parent company Digital Currency Group (DCG). Its other “daughter”, Genesis Global, has suspended the withdrawal of funds and the issuance of loans.
In January 2023, the crypto lending platform filed for bankruptcy.
Recall that Bernstein analysts admitted that in order to solve financial problems, DCG could liquidate the Grayscale bitcoin trust.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
