Grayscale CEO Michael Sonnenshein said they had engaged in meaningful conversations with the SEC, and the discussions suggest that the watchdog is eager to make the needed progress.
As the Bitcoin (BTC) community eagerly awaits the launch of the spot Bitcoin ETF, Sonnenshein has some great news to share. In his December 6 interview with Yahoo Finance, Michael Sonnenshein said he is feeling highly optimistic about the recent conversations with the United States Securities and Exchange Commission (SEC) over the approval of the spot Bitcoin ETF.
“We’re feeling optimistic. We have been actively engaging with the SEC. The questions 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.”
Nonetheless, he added that the SEC did not share any definite timelines for the approval.
The Legal Battles
In the efforts to establish a spot Bitcoin exchange-traded fund (ETF), Grayscale achieved a massive legal victory in August. Three judges ruled that the US Securities and Exchange Commission (SEC) needs to re-evaluate Grayscale’s application for a spot Bitcoin ETF. The development came after Grayscale’s legal action against the SEC in 2022 after the rejection of its proposal for changing its flagship Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund.
The Chair of the SEC, Gary Gensler, revealed during a Senate Banking Committee hearing in September that the agency was still actively in the process of reviewing the court’s decision. Many firms, including Fidelity and BlackRock, have submitted applications for spot Bitcoin ETFs.
Experts say the favorable Grayscale court ruling might influence a positive decision for other applicants. It is notable, nonetheless, that Gensler has expressed doubt about cryptos, and the SEC has voiced concerns in the past about potential fraud and manipulation in the crypto sector.
Sonnenshein Responded To Jamie Dimon’s Crypto Ban Appeal
When questioned by Yahoo Finance, Sonnenshein shared his candid response to JPMorgan CEO Jamie Dimon’s statement while attending a Senate Banking Committee hearing. Dimon had expressed his readiness to shut down crypto in case he was in a government position and confirmed his opposition to cryptocurrencies and Bitcoin.
Sonnenshein noted that each executive has their personal opinions on new technologies. The Grayscale CEO mentioned:
“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 insisted on the need for a considerable shift in the narrative that surrounds financial crimes within the crypto industry. He highlighted the large difference in scale between traditional finance and the crypto sector, challenging the assumption that crypto is more prone to illegal activities.
Teng pointed out that, according to Dr. Andrzei Gwizdalki, illegal financial activities are highly prevalent in fiat currencies compared to crypto transactions.