Home Business framework SEC Avoids Bitcoin Opportunity With One-Time ETF Denial: Grayscale CEO

SEC Avoids Bitcoin Opportunity With One-Time ETF Denial: Grayscale CEO

0

Grayscale Investments CEO Michael Sonnenshein has weighed in on the U.S. Securities and Exchange Commission’s decision to reject the firm’s bid to transform the the largest bitcoin fund in the world in an exchange-traded fund.

In its ruling, the SEC said the firm’s request to turn the Grayscale Bitcoin Trust into a spot Bitcoin ETF did not answer the agency’s questions about concerns about market manipulation.

Teleprinter Security Last To change To change %
GBTC BITCOIN TRUST IN GRAYSCALE 13.77 +0.02 +0.15%

“We were just asking the SEC to bring this closer to the regulatory perimeter, to provide additional protections, to provide additional disclosures and the SEC is kind of avoiding the opportunity for investors to do that,” Grayscale CEO said. , Michael Sonnenshein, at FOX Business’ Making Money with Charles Payne on Tuesday. “Investors want it, investors deserve it, and they are a regulator of disclosure. If the disclosures are there and the risks are described, investors should be free to invest in whatever they want.”

FTX SIGNS AN AGREEMENT WITH AN OPTION TO BUY CRYPTO LENDER BLOCKFI

Michael Sonnenshein, Managing Director of Grayscale Investments LLC, speaks during an interview at the Greenwich Economic Forum in Greenwich, Connecticut on Tuesday, September 21, 2021. (Jeenah Moon/Bloomberg via Getty Images/Getty Images)

Following the SEC decision, Grayscale filed a petition for review in the United States Court of Appeals for the District of Columbia Circuit. Leading the company’s defense are Grayscale’s senior legal strategist, Donald B. Verrilli Jr., a former US solicitor general, and a team of attorneys from the law firm Davis Polk & Wardwell.

“We were prepared for all scenarios, regardless of how the SEC ruled here,” Sonneshein noted.

Teleprinter Security Last To change To change %
BITO PROSHARES TRUST STRATEGY BITCOIN ETF 1:48 p.m. -0.05 -0.37%
GCC WISDOMTREE TRUST IMPROVED COMMODITY STRATEGY 22.98 +0.30 +1.32%
BITQ TRADE CONCEPTS ON EXCHANGE TRUST BITWISE E CRYPTO INNOVATORS 6.67 +0.17 +2.62%

While the agency has repeatedly denied spot Bitcoin ETFs, including loyalty and VanEckhe gave the green light to ETFs that offer exposure to Bitcoin but are not pure players, such as the ProShares Bitcoin Strategy ETFWisdomTree’s Enhanced Commodity Strategy Fund and Bitwise Crypto Industry Innovators ETF.

FBI ADDS ‘CRYPTOQUEEN’ TO TEN MOST WANTED LIST

The SEC’s latest decision on spot Bitcoin ETFs comes as Chairman Gary Gensler previously called cryptocurrencies the “Wild West” and called on Congress to take regulatory action.

In March, President Biden signed an executive order directing his administration’s agencies to study whether the US central bank should create a digital currency. Additionally, Sen. Cynthia Lummis, R-Wyo., and Sen. Kirsten Gillibrand, D-NY, introduced a bill to create a regulatory framework for cryptocurrencies.

Sonneshein believes that increased regulation of the cryptocurrency would give it “more resilience” and “increase the validity of the asset class”.

“I think the state of crypto in DC is where it has never been before,” he added. “The level of engagement, the level of care and the willingness to engage on these issues is really important and we see countries around the world continuing to adopt crypto and crypto-focused regulation because they don’t they don’t want to waste innovation. They want to create job growth and they want to make sure they stay technologically competitive.”

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

Sonneshein’s comments come as the price of Bitcoin has fallen since hitting an all-time high of $68,990.90 per coin last year.

As of press time Saturday, the world’s largest cryptocurrency is trading above $21,000 per coin. In June, Bitcoin briefly hit a 52-week low of $17,601.58 per coin.

The total market capitalization of the global crypto market has fallen below $1 trillion, from its 2021 peak of around $2.8 trillion, according to CoinMarketCap.

“If you’re in crypto, you know that comes with volatility. The asset class has seen these kinds of significant drawdowns before on several occasions,” Sonneshein says. “Every time our industry is challenged, we learn lessons, we get stronger and we keep building and moving forward and I think this time is no different.”