The Chief Executive Officer of Grayscale Investments said that the encryption regulatory inspection method of the United States Securities and Exchange Commission (SEC) has limited the development trend of BTC (BTC) in the country.

In a letter published in the Wall Street Journal on January 23, Michael Sonnenschein, the CEO of Cryptocurrency Investment Management Company, said that he allowed the SEC to "slow down" at the level of encryption supervision and prevention of FTX failure, and added:

"Time cannot capture what is happening here at all. The key is the one-dimensional way that the Securities and Exchange Commission carries out supervision based on inspection."

Grayscale is now suing the SEC for refusing to convert its BTC private fund into an exchange traded fund (ETF) based on spot trading.

He responded that the SEC "should naturally diligently eliminate all kinds of bad actors", but should not hinder "the unremitting efforts to formulate appropriate regulations"

Sonneshein wrote that the regulatory organization did not take any action to prevent all kinds of bad actors from entering the field of encryption, "blocking BTC from entering the field of American regulation".

He pointed out that this drove American investors to apply the offshore account encryption business process of "less maintenance and guidance".

"We are seeing the adverse effects of the priority items of the Securities and Exchange Commission appear immediately, which will endanger the rights and interests of American investors."

CoinTelegram has contacted the Securities and Exchange Commission for comment

At the time of Sonnenstein's release of this article, Grayscale had filed a lawsuit against the United States Securities and Exchange Commission (SEC), calling it "arbitrary denial" Grayscale converted its Grayscale Bitcoin Trust (GBTC) into a spot trading ETF plan.

The SEC felt that Grayscale's proposal did not adequately safeguard fraud and manipulation. Grayscale argued that the SEC recklessly differentiated the spot market products from commodity futures commodities.

Grayscale is owned by Digital Currency Group (DCG), a crypto group company, which has encountered accounting difficulties at this stage.

DCG also owns the closed Genesis Trading, which was accused by the SEC on January 12 for allegedly selling unregistered securities.

Last week, John Reed Stark, a cryptosceptic and former chief executive of the SEC, strongly criticized the term "inspection and supervision", calling it "stupid big encryption trap statement"

On January 22, she pointed out in a Linkedin post that this term is a "false, biased and persistent effort, committed to the use of compassionate libertarianism and anti-regulatory social morality", and called "thorough nonsense"

In his view, "prosecution and SEC inspection are actually the operation mode of securities supervision."