Cameron Winklevoss, who co-founded a cryptocurrency exchange called Gemini, has strongly criticized the U.S. Securities and Exchange Commission (SEC) for not approving a Bitcoin investment fund. He believes that this decision has harmed American investors and shows that the SEC has failed in its role as a regulator. Winklevoss made these comments on the 10th anniversary of his first attempt to create a Bitcoin investment fund.
The SEC has repeatedly said “no” to proposals for Bitcoin investment funds, which means that regular people have not been able to easily invest in Bitcoin. Winklevoss argues that this refusal has caused problems because it forces investors to choose other, less attractive options. He specifically mentioned the Grayscale Bitcoin Trust as an example.
Winklevoss also pointed out that the SEC’s refusal to approve Bitcoin investment funds has led to more Bitcoin trading happening on unregulated platforms outside the United States. This is risky for investors who want to invest in cryptocurrency but prefer safer and regulated options.
He also accused the SEC of indirectly guiding investors toward a cryptocurrency exchange called FTX, which was involved in a major financial fraud. According to Winklevoss, by not providing a regulated way for people to invest in Bitcoin through investment funds, the SEC has unintentionally directed them to riskier platforms.
Winklevoss called for a reassessment of how the SEC operates. He believes the SEC should focus on protecting investors, making sure markets are fair and well-organized, and helping new companies raise money. If the SEC did these things better, it would be more beneficial for American investors.
Winklevoss’s criticism comes after recent statements by the SEC that they found applications for Bitcoin investment funds to be inadequate. The chairman of the SEC, Gary Gensler, has expressed concerns about protecting investors, preventing market manipulation, and having strong rules in place before approving these kinds of investment products.
However, Gensler’s comments have faced a lot of criticism. Some people think he is going beyond his role as chairman and making decisions that go against the laws that govern the SEC. There have been calls for him to be removed from his position, with one member of Congress even introducing a bill to reform the SEC and get rid of Gary Gensler, whom they describe as a “tyrannical” chairman.