Sonnenshein cautions that the SEC’s step-by-step crypto regulation, often through court cases, might hinder innovation and push crypto companies to other countries.He wants clear rules for e-currencies and securities. He’s hopeful about Congress defining regulations, especially for Bitcoin ETFs.
Grayscale CEO Michael Sonnenshein spoke to Fox Business and shared worries about the SEC’s way of handling crypto rules. He’s concerned it could hurt the U.S. economy if they keep doing it piece by piece.
SEC’s Actions Might Hinder U.S. Innovation
Sonnenshein is worried that the SEC’s current approach, which involves taking crypto issues to court, could stop innovation in the U.S. He said, “If we’re always going to court for crypto, we’re stopping innovation.” He thinks this might make crypto companies leave the U.S. for places with easier rules.
Grayscale’s CEO isn’t alone in this view. Ripple’s CEO, Brad Garlinghouse, said similar things about the SEC. He thinks they want to stop innovation in the U.S. crypto world. Ripple is also in a lawsuit with the SEC, and Garlinghouse believes more cases will come up. He says the fight for clear rules must keep going.
Demand for Clearer Rules and Guidelines in Regulation
Sonnenshein also stressed the importance of clear definitions for crypto commodities and securities. He thinks straightforward rules, especially for stablecoins, are needed for the industry to grow and be stable. This could keep businesses and people in the U.S. and help the economy.
He said, “If we make things clearer, crypto companies and people won’t leave the U.S. because they think the rules are against them.”
Sonnenshein also mentioned a good thing. He’s hopeful about new laws to make crypto rules clear. He talked about the Financial Innovation and Technology for the 21st Century Act, which was approved by the House Financial Services Committee. This act will have rules for virtual currency companies, under either the Commodity Futures Trading Commission or the SEC.
Rethinking SEC’s Approach to Bitcoin ETFs
Sonnenshein likes Congress’ direction, but he thinks the SEC should change its view on Bitcoin exchange-traded funds (ETFs). He’s worried about how the SEC picks which Bitcoin ETFs can be used. He believes the SEC’s job isn’t to choose who wins or loses, but to make sure all the important information is there for investors.
He said this because the SEC recently delayed deciding on the spot Bitcoin ETF by ARK Investment Management. The SEC wanted people’s opinions on the ARK 21Shares Bitcoin ETF. This is another delay in the U.S. for deciding if a spot crypto ETF is allowed.
Summary:
In the changing world of cryptocurrencies, having fair and clear rules is very important. Big names in the industry, like Sonnenshein and Garlinghouse, want innovation and safety for investors. What happens in the next months will decide how the U.S. handles crypto rules.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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