- Winklevoss stated that SEC’s refusal to approve spot Bitcoin ETF “demonstrates how the SEC is a failed regulator.”
- SEC has reportedly rejected the applications citing that they are not “sufficiently clear and comprehensive.”
On Saturday, the Winklevoss twins-cofounders of crypto exchange Gemini launched a broadside against the United States Securities and Exchange Commission, accusing the regulatory body of pushing investors into “toxic” and “unregulated” crypto products.
Mentioning how the SEC is yet to give the green light to a Spot Bitcoin ETF application, Cameron Winklevoss noted that the” SEC’s refusal to approve these products for a decade had been a complete and utter disaster for U.S. investors.”
The Gemini co-founder further claimed that the regulatory body’s refusal to approve the application “demonstrates how the SEC is a failed regulator.”
In his Twitter Thread, he went on to state that the lack of an approved spot Bitcoin ETF has driven investors into “toxic products like the Grayscale Bitcoin Trust, which trades at a massive discount” to the price of Bitcoin and charges “astronomical” fees.
“Maybe the SEC will reflect on its dismal record, and instead of overstepping its statutory power and trying to act like the gatekeeper of economic life, it will focus on fulfilling its mandate of investor protection,” he added.
Investors have long been arguing for an ETF since it lets them not worry about private keys, storage, or security. Crypto ETFs, similar to traditional exchange-traded funds, are investment vehicles designed to track the performance of a specific index in the cryptocurrency market. These ETFs are traded on exchanges and offer investors exposure to the price movements of one or multiple digital tokens.
SEC has reportedly rejected the applications citing that they are not “sufficiently clear and comprehensive.” The regulatory watchdog has repeatedly cited the potential for market manipulation among cryptocurrency traders among its major concerns.
The Winklevoss Twins were the first to file for a Bitcoin ETF-like trust in 2013; since then, a slew of similar applications has reached SEC’s desk, including from Fidelity, Ark Invest, Grayscale, among others. But, all have been turned down by SEC, citing banal reasons.