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

Grayscale CEO, Michael Sonnenshein, has expressed concern about the regulatory approach taken by the U.S. Securities and Exchange Commission (SEC) towards the cryptocurrency industry. He emphasized the importance of a balanced approach to regulation that does not stifle innovation. Sonnenshein suggested that if every crypto issue is required to go through a court of law, it could drive crypto firms out of the country, hindering the innovation taking place within the industry.

Ripple CEO Brad Garlinghouse has echoed similar sentiments, stating that the SEC is looking to "kill" innovation in the U.S. and that the fight for regulatory clarity needs to continue.

Sonnenshein remains optimistic about the ongoing efforts in Congress to provide regulatory clarity for the industry. He believes that certain legislation being considered could give the industry the clarity it needs to move forward while embracing crypto.

Regarding Bitcoin exchange-traded funds (ETFs), Sonnenshein noted that the SEC's assessment of which Bitcoin ETFs should be introduced to the market should consider multiple spot Bitcoin products and Bitcoin futures products. He argued that the SEC's previous approval of a Bitcoin Futures ETF indicates its oversight of the Bitcoin market.

The regulatory environment for cryptocurrencies in the U.S. continues to evolve, with various legislative proposals and regulatory decisions impacting the industry. The delays and decisions surrounding spot crypto ETFs remain a significant point of discussion within the crypto community.

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