- Michael Sonnenshein says the SEC needs to halt the “bad actors” from the crypto industry.
- SEC’s approach has prompted U.S. investors to select offshore crypto platforms.
Bitcoin (BTC), the dominant cryptocurrency in the market, has witnessed a deceleration in its further expansion due to the Securities and Exchange Commission (SEC). According to Michael Sonnenshein, the CEO of one of the top investment management firms, Grayscale Investments, the SEC’s crypto regulatory laws have resulted in the slowdown of Bitcoin’s progression.
Sonnenshein stated in a letter published recently in The Wall Street Journal that he agreed with the statement that the SEC was “late to the game.” This is in relation to crypto regulation and preventing FTX from going bankrupt.
Michael Sonnenshein stated:
Late’ doesn’t capture what transpired here. The problem is the Securities and Exchange Commission’s one-dimensional approach to regulation by enforcement.
Grayscale CEO Slams SEC
The head of Grayscale Investments added that the U.S. regulatory body, the SEC, needs to put in an effort to remove the “bad actors.” At the same time, it shouldn’t continue to block attempts to create suitable market regulation. He further added that “Bitcoin’s advancement into the U.S. regulatory perimeter” has been discouraged. This is because of the authorities’ lack of action to prevent such bad actors from entering the cryptocurrency domain.
According to Michael Sonnenshein, the approach of the SEC toward the cryptocurrency industry has prompted crypto enthusiasts in the U.S. He claimed that the investors are motivated to select offshore crypto platforms, which offer attributes such as less regulation.
This is not the first time Grayscale Investments has run afoul of SEC regulations. Recently, the platform’s authorities have criticized the SEC’s rejection of their proposed bitcoin-backed ETF.