Michael Sonnenschein, CEO of Grayscale Investments, has warned of the potential negative impact on the U.S. economy if the Securities and Exchange Commission (SEC) continues to take a piecemeal approach to regulating the cryptocurrency industry. He stressed that it could have consequences.
Recent interview In an interview with Fox Business, Sonnenschein said the SEC’s constant enforcement action against the crypto industry could force crypto companies out of the country.
“If every cryptocurrency issued has to go to court, we as a country are killing the innovation that is happening here,” Sonnenschein said.
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He further explained that providing the industry with clearer definitions of cryptocurrency products and cryptocurrency security, as well as clearer regulatory guidelines for stablecoins, would prevent companies from moving out of the United States.
“By further clarifying this, we will not leave the U.S. companies and people working on cryptocurrencies because our regulatory environment is hostile to the asset class, but will accept cryptocurrencies instead.” It will be.”
Similarly, Ripple CEO Brad Garlinghouse repeated similar comments before Ripple’s partial victory was decided on July 13.
On June 17, Garlinghouse announced that the SEC was “trying to kill” U.S. innovation and cryptocurrencies, adding that while the Ripple lawsuit was coming to an end, it was the beginning for many others. I explained that it was nothing more than
“Ultimately, our case is closed, but many others are just getting started, so the battle for clarity must continue,” Garlinghouse said.
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Sonnenschein is optimistic about ongoing developments being undertaken by Congress to bring regulation clarity to the industry.
“Many of the bills that are very likely to pass in this parliament could give the industry the real clarity it needs to move forward on how to embrace cryptocurrencies,” Sonnenshain said. .
On July 31, Cointelegraph reported that the House Financial Services Committee (FSC) has approved the Financial Innovation and Technology for the 21st Century Act by a 35-15 vote.
The law aims to establish registration rules for cryptocurrency companies under the jurisdiction of the Commodity Futures Trading Commission (CFTC) or SEC.
However, Sonnenschein believes the SEC is evaluating the wrong criteria when deciding which Bitcoin ETFs should enter the market.
“When you think about the process the SEC should take here, it’s not about picking winners and losers, it’s about ensuring that all appropriate disclosures are provided to investors.”
On August 11, the SEC postponed a decision on the outcome of a proposed spot Bitcoin ETF by ARK Investment Management.
After being published in the Federal Register, the SEC has opened a public comment period for the ARK 21Shares Bitcoin ETF.
This marks the latest delay in the regulatory decision-making process for approving or disapproving spot cryptocurrency ETFs in the United States.
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