Using courts for every crypto issue will squash innovation: Grayscale CEO
Grayscale Investments CEO, Michael Sonnenshein, highlighted a potential negative outcome for the United States economy if the Securities and Exchange Commission (SEC) continues to take a one-by-one approach to regulating the cryptocurrency industry.
During a recent interview with Fox Business, Sonnenshein expressed that the SEC could drive crypto firms out of the country by constantly resorting to enforcement actions against the industry.
“If every crypto issued needs to go to a court of law, then as a country, we are squashing the innovation taking place here,” Sonnenshein stated.
He further explained that providing the industry with distinct definitions for crypto commodity and crypto security, as well as clearer regulatory guidelines for Stablecoins, would prevent businesses from relocating outside the U.S.
Likewise, Ripple CEO Brad Garlinghouse echoed similar comments prior to the partial victory of Ripple, which was decided on July 13.
On June 17 Garlinghouse expressed that the SEC is “looking to kill” innovation and the cryptocurrency in the U.S. He further explained as the Ripple lawsuit is coming to a close, it is only the beginning for many others.
“Ultimately as our law suit comes to a close, for so many others its just starting, so the fight for clarity has to continue," Garlinghouse stated.
Related: SEC decision on Bitcoin ETFs won’t leave out Wall Street giants
Sonnenshein holds a positive outlook regarding the ongoing developments Congress is taking to provide regulatory clarity for the industry.
“A lot of this legislation that this congress could very well pass, could give the industry the actual clarity it needs to move forward in a way that embraces crypto” Sonnenshein stated.
On July 31, Cointelegraph
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