Grayscale CEO Claims Involving Court in Every Crypto Case will Hinder Innovation
- Grayscale CEO Michael Sonnenshein stated that the SEC’s regulation by enforcement tactic is hurting crypto.
- He said that if the SEC continues to take all crypto matters to court, firms will end businesses in the US.
- Sonnenshein said that establishing clear regulatory guidelines will prevent crypto firms from leaving the US.
- The Grayscale CEO also believes that the SEC should greenlight all the Bitcoin spot ETFs at the same time.
Michael Sonnenshein, the CEO of Grayscale, a leading digital asset management firm that became famous after its flagship product, GBTC, claims that involving courts in every incident related to the crypto sector will hinder innovation and drive developers away from the chaotic industry. These comments come after the United States Securities and Exchange Commission (SEC) filed lawsuits against dozens of crypto firms and personalities.
In a recent interview with Fox Business, the Grayscale executive stated that the SEC will drive blockchain and crypto startups from the United States if it continues to use regulation and enforcement policies against these businesses. Interestingly, similar statements have been made by many prominent members of the crypto sector, and multiple crypto firms have given up on the US market.
“If every crypto issue needs to go to a court of law, then as a country, we are squashing the innovation taking place here,” Sonnenshein said.
According to Sonnenshein, providing clear regulatory guidelines and establishing clear boundaries between crypto securities and crypto commodities will allow the digital asset sector to flourish. Implementation of a clear framework for stablecoin regulation will also prevent the migration of crypto firms outside the US.
Additionally, the Grayscale CEO also believes that the SEC should greenlight all the Bitcoin spot ETFs at the same time to avoid one firm getting the upper hand and promote healthy competition.
“Adding further clarity to this would ensure that companies and people working on crypto don’t leave the U.S. because our regulatory environment is hostile towards the asset class but instead embraces it,” said Sonnenshein.
As reported earlier by Bitnation, US Congressman Warren Davidson introduced a bill in Congress to fire SEC Chair Gary Gensler for driving out crypto businesses from the US and abusing his powers. Crypto players have criticized Gensler for turning on the digital asset industry after praising tokens like Algorand during his time as MIT professor.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
