Michael Sonnenshine, CEO of cryptocurrency investment firm Grayscale Investments, has criticized the SEC for being too one-sided and “flat” in its approach to regulating digital assets.
In a letter from Michael Sonnenshein, published in The Wall Street Journal, he notes that he considers the SEC’s approach to regulating digital currencies to be ineffective. According to Grayscale’s top manager, the regulator was late in developing adequate measures to regulate the sphere. And the bankruptcy of the FTX exchange showed this especially clearly:
“The word “late” does not accurately reflect the complex essence of the problem. It lies in the US Securities and Exchange Commission’s one-sided approach to regulation through sanctions, instead of creating a proactive approach.
Recall that Grayscale is in the process of litigation with the US regulator. The fact is that the SEC does not allow the conversion of a GBTC trust into a spot exchange-traded fund (ETF) for bitcoin. The company filed a complaint against the decision of the Commission.
In his letter, Sonnenshine emphasized that the SEC had failed in its task of protecting the cryptocurrency market from scammers and criminals. And, accordingly, “prevented the development of acceptance of Bitcoin in the US regulatory sphere.” He encourages American investors to use foreign cryptocurrency platforms.
Earlier it was reported that in 2022, the SEC introduced a record number of enforcement actions against the cryptocurrency industry.
Source: Bits
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