Grayscale Investments CEO Michael Sonnenshein is uncomfortable with the current problem-solving method of the US securities regulator, the SEC. The SEC has always tried to rein in the industry through sanctions. Regulatory bodies, which have filed a large number of crypto lawsuits, have caused investors to suffer significant losses. In the same period, the SEC did not see or ignore the irregularities swirling in the FTX exchange at its disposal.
During a recent interview with Fox Business, Sonnenshein said that the SEC could smuggle crypto firms out of the country by repeatedly resorting to sanctions actions against the industry. Many US-based crypto giants have faced the SEC or are worried about when it will come. Giants like Ripple are considering moving to crypto-friendly regions like Dubai.
As some Republicans have criticized, the country’s current crypto policy is killing innovation. The fact that the US has achieved its dominance in technology through its support for innovation, but now adopting such an opposite policy, reveals the negative discrimination against crypto. The CEO of Grayscale, whose ETF lawsuit with the SEC is ongoing, said:
If every crypto issue has to go to court, then as a country we are crushing the innovation that is happening here.
Sonnenshein further explained that providing the industry with different definitions for crypto commodities and crypto securities, as well as clearer regulatory guidelines for stablecoins, will prevent businesses from moving outside of the US:
Clarifying this issue further will ensure that companies and people working on crypto don’t leave the US because our regulatory environment is hostile to the asset class, while many other countries embrace it.