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 issue needs to go to a court of law, then as a country, we are squashing the innovation taking place here,” Sonnenshein stated.
Sonnenshein reiterated the industry needs distinct definitions for crypto commodities and crypto securities, as well as clearer regulatory guidelines for stablecoins.
He believes this will prevent businesses from relocating outside the U.S. Sonnenshein stated:
“Adding further clarity to this would ensure that companies and people working on crypto don’t leave the U.S. because our regulatory environment is hostile towards the asset class but instead embraces it.”
Likewise, Ripple CEO Brad Garlinghouse echoed similar comments prior to the ruling of Ripple’s partial victory against the SEC, which was decided on July 13.
On June 17, Garlinghouse expressed that the SEC is…
