The CEO of Grayscale Investments believes that regulatory pressure on the cryptocurrency industry from the US authorities entails a slowdown in the development of the digital industry.

Michael Sonnenshein, in an interview with Fox Business, said that the US Securities and Exchange Commission (SEC) only harms with its actions.

“If any problem with cryptocurrencies leads to litigation, then this means that the state simply destroys innovation. If you make the work of cryptocurrency companies more transparent, then they will stop fleeing the United States. Right now, our regulatory environment is extremely hostile to digital asset companies,” Sonnenschein said.

The CEO of Grayscale believes that the American regulator has taken “wrong guidelines” in relation to Bitcoin ETFs. According to the businessman, the SEC “does not need to choose winners and losers,” but simply evaluate applications honestly.

Recently, Michael Sonnenshine said that the presence of many submitted applications for Bitcoin spot ETFs works in favor of the first cryptocurrency.