Cameron Winklevoss calls SEC’s rejection of spot Bitcoin ETFs a catastrophe

Gemini co-founder Cameron Winklevoss has criticized the U.S. Securities and Exchange Commission (SEC) for its rejection of spot Bitcoin ETF.

He said that in 2013 the co-founders of the trading platform first filed for a spot trust. The agency rejected it.

“The rejection of approving these products for ten years is a complete and absolute catastrophe for American investors and demonstrates that the SEC is an incompetent regulator,” said Winklevoss.

According to him, the Commission’s approach is pushing investors to use unlicensed venues to access spot ETFs tied to the first cryptocurrency.

Cameron Winklevoss called Grayscale’s Bitcoin Trust a “toxic product,” and FTX one of “the largest financial frauds in modern history.” He believes it is the agency that pushes investors toward their use.

“Perhaps the SEC will reflect on its poor track record and, instead of overstepping its legal powers and trying to act as a gatekeeper of economic life, focus on fulfilling its mandate to protect investors,” wrote the Gemini co-founder.

On June 30, the SEC deemed the spot Bitcoin ETF applications from BlackRock, Fidelity and others “unclear and incomplete.” After this, they made changes to their documentation.