Gemini CEO Slams SEC for Denying Bitcoin ETFs, Leaving US Investors with ‘Toxic’ Products

Calls to remove the head of the SEC grow amidst dissatisfaction with their handling of the crypto industry.

Cameron Winklevoss, co-founder of the Gemini crypto exchange, said that over the past ten years, the US Securities and Exchange Commission (SEC) has literally forced investors to buy “toxic” and “unregulated” crypto products.

Winklevoss criticized the SEC for consistently denying applications to open Bitcoin spot exchange-traded funds (ETFs). He recalled that 10 years had passed since Gemini filed an application to open its own ETF.

The failure to approve these products over the past decade has been a complete and utter disaster for US investors and demonstrates how failed the SEC has been as a regulator,” he stressed.

As a result, US investors have had to buy “toxic products like the Grayscale Bitcoin Trust (GBTC), which trade at a huge discount” to the price of Bitcoin (BTC) and charge “astronomical” fees.

In addition, the SEC’s stance has forced investors to move to “unlicensed and unregulated” offshore platforms, including the FTX crypto exchange. Winklevoss considers it “one of the biggest financial scams in modern history”.

Perhaps the SEC will reflect on its gloomy reputation and <…> focus on fulfilling the investor protection mandate,” he suggested.

Earlier on Friday, June 30, the SEC stated that recent filings for spot bitcoin ETFs were not “clear and comprehensive.” According to the regulator, the companies failed to provide enough information about how the data exchange will take place. In addition, not a single ETF application met the regulator’s standards.

Growing dissatisfaction with the policies of the SEC has led to the fact that in the United States, they are asked to remove the head of the regulator, Gary Gensler.

The US Blockchain Association believes that it should not be allowed to regulate the crypto industry – the Commission has not yet formed clear rules for regulating the crypto industry. Moreover, Gensler has shown a “blatant bias” towards the cryptosphere, which could prevent a fair assessment of important issues.

What is the significance of Bitcoin ETFs?

The approval of Bitcoin ETFs holds immense significance for the crypto industry, paving the way for greater mainstream adoption and opening up new investment opportunities. ETFs provide a regulated and familiar investment vehicle for investors to gain exposure to Bitcoin without directly owning the asset. This approval would bridge the gap between traditional financial markets and cryptocurrencies, attracting institutional investors, traditional financial institutions, and retail investors who have been hesitant to enter the crypto market directly.

By introducing Bitcoin ETFs, regulators can establish a transparent framework for oversight, enhancing market transparency and addressing concerns related to security, custody, and regulatory compliance. The approval would provide a regulated platform that aligns with traditional investment practices, making it easier for investors to incorporate Bitcoin into their portfolios. Additionally, ETFs offer liquidity and ease of trading, enabling investors to buy and sell Bitcoin more conveniently.

Overall, the approval of Bitcoin ETFs would represent a significant milestone in the integration of the crypto industry with traditional financial systems. It would expand the reach of cryptocurrencies, increase market liquidity, and create new avenues for mainstream investors to participate in the digital asset market, fostering greater adoption and growth in the industry.

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