Michael Sonnenshein, CEO of Grayscale InvestmentsIn a letter to The Wall Street Journal, he criticized the Securities and Exchange Commission’s (SEC) “one-way regulation approach based on sanctions” for cryptocurrencies.
Grayscale CEO Sonnenschein Criticizes SEC’s Cryptocurrency Policies
Sonnenshein, two members of the Capital Markets Regulatory Committee, of the SEC “The SEC should certainly try to eliminate malicious actors, but this should not be at the expense of proper regulation development efforts,” he wrote in response to an opinion report on why crypto exchange FTX did not prevent its collapse.
Sonnenshein added, “The inaction of the SEC has prevented Bitcoin from advancing into the US regulatory environment, forcing US investors overseas, often with less protection and oversight.”
The WSJ’s original column argued that securities regulators were “more interested in protecting their territory than in protecting investors.”
Grayscale filed a lawsuit against the SEC in July after the SEC rejected their application for a spot Bitcoin ETF.
Digital Currency Group is the parent company of troubled crypto lender Genesis and Grayscale, which recently filed for bankruptcy protection.
With the bankruptcy of Genesis, some concerns arose about the future of Grayscale in the crypto money market.
However, it was a surprise that Genesis’ bankruptcy did not have the expected impact in terms of prices in the cryptocurrency market. Bitcoin price continued to rise despite the Genesis bankruptcy and is hovering above $23,000 at the time of this writing.
“We see in real time the consequences of the priorities set by the SEC are to the detriment of US investors,” Sonnenshein wrote.
*Not investment advice.
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