SEC has pushed investors into 'toxic' crypto products and FTX: Winklevoss

For the past decade, the United States securities regulator has forced investors into “toxic” and “unregulated” crypto products, says Gemini co-founder Cameron Winklevoss.

On July 2, the Winklevoss duplicate slammed the U.S. Securities and Exchange Commission (SEC)'s changeless refusal of spot Bitcoin exchange-traded funds, noting it's present been 10 years since they archetypal filed to get their ain ETF approved by the regulator.

“The SECGov's refusal to o.k. these products for a decennary has been a implicit and utter catastrophe for US investors and demonstrates however the SEC is simply a failed regulator.”

Winklevoss argued that without an approved spot Bitcoin ETF, U.S. investors person been pushed into “toxic products similar the Grayscale Bitcoin Trust (GBTC)” which trades astatine a monolithic discount to the terms of Bitcoin and charges “astronomical” fees.

— Cameron Winklevoss (@cameron) July 2, 2023

GBTC’s NAV discount is presently astatine 30% compared to Bitcoin’s price, according to YCharts, portion the GBTC yearly interest is 2%, compared to an mean of 0.40%, according to the latest, July 2022 study from fiscal services steadfast MorningStar.

Winklevoss besides believes the refusal has led to U.S. investors moving to “unlicensed and unregulated” offshore platforms, including FTX, which helium has called “one of the largest fiscal frauds successful modern history.”

“Maybe the SEC volition bespeak connected its dismal grounds and alternatively of overstepping its statutory powerfulness and trying to enactment similar the gatekeeper of economical life, it volition absorption connected fulfilling its mandate of capitalist protection,” helium opined.

Related: Cathie Wood’s ARK reportedly ‘first successful line’ for a spot Bitcoin ETF

Winklevoss’ comments travel arsenic a flurry of companies has precocious filed, renewed, oregon amended their filings for a spot Bitcoin ETF including BlackRock, Fidelity, WisdomTree, Invesco, Valkryie and ARK Invest.

The SEC has reportedly said immoderate of the filings for spot ETFs are inadequate and not “sufficiently wide and comprehensive.” The regulator has asked for the money managers to resubmit aft clarifying their filings language.

MeanwhileGemini is successful a protracted tribunal mediation with Genesis, a subsidiary of Digital Currency Group (DCG) which besides owns Grayscale — the manager for the GBTC. The speech is besides successful tribunal connected charges from the SEC.

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