Using courts for every crypto issuance will squash innovation: Grayscale CEO

Grayscale Investments CEO Michael Sonnenshein pointed to a antagonistic result for United States system if the Securities and Exchange Commission (SEC) continues to instrumentality a one-by-one attack to regulating the cryptocurrency industry.

During a caller interview with Fox Business, Sonnenshein expressed that the SEC could thrust crypto firms retired of the state by perpetually resorting to enforcement actions against the industry.

“If each crypto issued needs to spell to a tribunal of law, past we are squashing the innovation taking spot here,” Sonnenshein stated.

Grayscale CEO Michael Sonnenshein connected Fox Business 'The Claman Countdown'. Source: Fox Business

Likewise, Ripple CEO Brad Garlinghouse echoed akin comments anterior to the partial triumph of Ripple, which was decided connected July 13.

Garlinghouse expressed that the SEC is “looking to kill” innovation and the cryptocurrency successful the U.S.

However, Sonnenshein holds a affirmative outlook regarding the ongoing developments Congress is taking to supply regulatory clarity for the industry.

“A batch of this authorities that this legislature could precise good pass, could springiness the manufacture the existent clarity it needs to determination guardant successful a mode that embraces crypto” Sonnenshein stated.

On July 31, Cointelegraph reported that the House Financial Services Committee (FSC) approved the Financial Innovation and Technology for the 21st Century Act with a 35-15 vote.

The enactment aims to found registration rules for crypto firms nether the jurisdiction of either the Commodity Futures Trading Commission (CFTC) oregon the SEC.

Sonnenshein pointed retired that the SEC is assessing the incorrect criteria erstwhile determining which Bitcoin ETF should beryllium introduced to the market.

“When I deliberation astir the process that the SEC should beryllium untaking here, it’s truly not to prime winners and losers, it is to guarantee that each the close disclosures are enactment retired determination for investors.”

Sonnenshein further explained during the interrogation that determination is country for respective spot Bitcoin products connected the market.

“We’ve been acceptable for a satellite wherever determination are aggregate spot Bitcoin products, wherever determination are aggregate bitcoin aboriginal products connected the market" Sonnenshein stated.

He argued that the SEC’s erstwhile support of the Bitcoin Futures ETF implies it does successful information person an capable oversight of the Bitcoin market.

“They bash not judge determination is capable surveillance successful the underlying Bitcoin market[...]The SEC already has the tools to o.k. spot Bitcoin ETFs."

Related: SEC determination connected Bitcoin ETFs won’t permission retired Wall Street giants

On Aug. 11, the SEC delayed its decision connected the result of the spot Bitcoin ETF projected by ARK Investment Management.

After its work successful the Federal Register, the SEC initiated a nationalist remark play for the ARK 21Shares Bitcoin ETF.

This marks the astir caller postponement successful the regulatory decision-making process regarding the support oregon disapproval of a spot crypto ETF successful the U.S.

Magazine: SBF ordered to jail, Bitcoin ETF delayed and SEC to entreaty Ripple case: Hodler’s Digest, Aug. 6-12