By
Chimamanda U. Martha
April 26th, 2024
The Grayscale CEO said that they have engaged in meaningful conversations with the SEC, and the dialogue suggests that the regulator is eager to make the progress.
As the BTC community eagerly awaits the launch of the spot Bitcoin ETF, Grayscale CEO Michael Sonnenshein has some good news to share. In his interview with Yahoo Finance on Wednesday, December 6, Sonnenshein said that he’s feeling quite optimistic about the recent conversations he had with the US Securities and Exchange Commission (SEC) over the approval of the spot Bitcoin ETF.
Sonnenshein said: “We’re feeling optimistic. We have been actively engaging with the SEC. The questions that we’re getting from them signal to us that they want to engage on this issue, that they’re eager to make progress on this issue”. However, he added that the SEC hasn’t shared any timelines for the approval.
In the pursuit of establishing a spot Bitcoin exchange-traded fund (ETF), Grayscale achieved a significant legal victory in August. Three judges ruled that the US Securities and Exchange Commission (SEC) must re-evaluate Grayscale’s application for a spot Bitcoin ETF. This development followed Grayscale’s legal action against the SEC last year after the rejection of its proposal for converting its flagship Grayscale Bitcoin Trust (GBTC) into an ETF.
Gary Gensler, the Chair of the SEC, disclosed during a Senate Banking Committee hearing in September that the agency was still in the process of reviewing the court’s decision. Several companies, including BlackRock and Fidelity, have submitted applications for spot Bitcoin ETFs.
Analysts suggest that the favorable Grayscale court ruling could influence a positive decision for other applicants. It is noteworthy, however, that Gensler has expressed skepticism about cryptocurrencies, and the SEC has previously voiced concerns regarding potential fraud and manipulation in the crypto market.
Sonnenshein Responds to Jamie Dimon’s Crypto Ban Appeal
When questioned by Yahoo Finance, Sonnenshein shared his response to JPMorgan CEO Jamie Dimon’s statement during a Senate Banking Committee hearing. Dimon had expressed his willingness to shut down crypto if he were in a government position and reiterated his opposition to Bitcoin and cryptocurrencies.
Sonnenshein noted that every executive holds their individual opinions on new technologies. The Grayscale CEO added:
“But if you take a big step back, there is no question that this asset class is here to stay, that investor interest in this asset class is only growing and it is these exact types of entities, these legacy institutions, these banks that are already well underway on evolving their business models to account for these new technologies.”
Binance CEO Richard Teng also emphasized the need for a significant shift in the narrative surrounding financial crimes in the crypto space. He pointed out the vast difference in scale between traditional finance and the crypto industry, challenging the notion that crypto is more prone to illicit activities. Teng highlighted the fact that, according to Dr. Andrzei Gwizdalki, illicit financial activities are more prevalent in fiat currencies compared to crypto transactions.
