The broader financial market is still responding to the Securities and Exchange Commission’s (SEC) rejection of the Grayscale spot Bitcoin Exchange-Traded Fund (ETF) because of worries about market manipulation, with SkyBridge Capital founder Anthony Scaramucci criticising the agency.
During an interview with CNBC’s Squawk Box on June 30, Scaramucci said that the rejection represents a “lost opportunity for the United States to extend its supremacy in the banking industry.”
The founder of an investing firm adds that the United States risks falling behind other areas, such as Canada and Europe, and maintains that it is paradoxical that the SEC rejected the Bitcoin ETF yet has not published crypto rules.
Impact on U.S. intellectual capital
According to Scaramucci, the SEC’s judgement is “bad for the nation” since the regulatory agency’s ambiguity will have a detrimental influence on future U.S. intellectual capital.
“This is a lost chance for the nation. We have held the dominant position in the financial services industry for almost a century. The fact that the SEC is headed in this way, while Europe and Canada permit cash ETFs, is a monumental squandered opportunity. Scaramucci said that the SEC now stands for Stop Economic Creativity.
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Moreover, he criticised the SEC leadership for bolstering its legal staff, despite the fact that little progress has been made in providing crypto legislation.
Despite the company’s significant efforts, the SEC denied Grayscale’s proposal to convert its $13.5 billion Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin ETF on June 29.
Grayscale sues SEC
Notably, the introduction of a spot Bitcoin ETF was considered a chance to provide consumers and institutions with a low-cost and readily accessible alternative to participate in Bitcoin.
As anticipated, Grayscale sued SEC within hours after the denial of the application. Grayscale has been preparing for this moment by strengthening its legal staff with important additions, including the 2011-2016 tenure of former Obama administration Solicitor General Verrilli Jr.
In this lawsuit, the investment firm will likely claim that the SEC has the authority to permit a spot Bitcoin ETF, similar to the Bitcoin futures ETF and other products now trading in relation to it.
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