SEC's 'one-dimensional' approach is slowing Bitcoin progress: Grayscale CEO

The attack to crypto regulatory enforcement by the United States Securities and Exchange Commission (SEC) stalled the advancement of Bitcoin (BTC) successful the country, according to the CEO of Grayscale Investments.

In a letter published successful The Wall Street Journal connected Jan. 23, the main of the cryptocurrency plus absorption firm, Michael Sonnenshein, said helium agreed with an assertion that the SEC was “late to the game” regarding crypto regularisation and preventing the bankruptcy of FTX, adding:

“‘Late’ doesn’t seizure what transpired here. The occupation is the Securities and Exchange Commission’s one-dimensional attack of regularisation by enforcement.”

Grayscale is presently suiting the SEC for denying the conversion of its Bitcoin spot to a spot-based Exchange Traded Fund (ETF).

He clarified the SEC “should surely effort to destruct atrocious actors” but it shouldn’t hinder “efforts to make due regulation.”

Doing our portion to re-instill spot and assurance successful #bitcoin and #crypto cc @Grayscale @CraigSalm @jenn_rosenthal $GBTC pic.twitter.com/u72RHmGTmJ

— Sonnenshein (@Sonnenshein) January 23, 2023

The inaction by the regulator to halt specified atrocious actors from entering the crypto manufacture “prevented Bitcoin's advancement into the U.S. regulatory perimeter” according to Sonnenshein.

This has frankincense forced American investors to offshore crypto businesses “with little extortion and oversight," helium said.

“We are seeing the consequences of the SEC’s priorities play retired successful real-time — astatine the disbursal of U.S. investors.”

Sonnenshein’s sentiment portion comes amid an ongoing suit betwixt Grayscale and the SEC for having “arbitrarily denied” Grayscale’s plans to convert its Grayscale Bitcoin Trust (GBTC) to a spot ETF.

The SEC argued Grayscale’s connection did not sufficiently support against fraud and manipulation. Grayscale countered saying the SEC was arbitrarily treating spot-traded products otherwise from futures-traded products.

Grayscale is owned by the crypto conglomerate Digital Currency Group (DCG), which is presently undergoing fiscal difficulties.

DCG besides owns the bankrupt Genesis Trading which was charged by the SEC connected Jan. 12 for allegedly selling unregistered securities.

Related: SEC leaked crypto miners’ idiosyncratic accusation during investigation: Report

Over the weekend, John Reed Stark, a crypto skeptic and erstwhile SEC main lambasted the term “regulation by enforcement” labeling it a “Bogus Big Crypto Catch Phrase.”

In a Jan. 22 station connected Linkedin, helium said the word was a “misguided, deflective effort designed to pat into sympathetic libertarian and anti-regulatory mores” calling it “utter nonsense.”

He argued that “litigation and SEC enforcement are really however securities regularisation works.”