Messari founder calls SEC stance on spot Bitcoin ETF fraud

Messari founder Ryan Selkis criticised the SEC for denying the conversion of Grayscale Investments’ bitcoin trust into a publicly traded ETF.

According to him, last year criminals deprived users of $1bn. Selkis noted that the Commission’s refusal to convert GBTC into a spot Bitcoin ETF is fraud that has inflicted far greater damage — $7bn.

$1bn was lost to crypto fraud last year.

$7bn has been lost to the SEC’s fraud in failing to approve a spot ETF at the expense of Grayscale investors.@GaryGensler doesnt care about protecting investors, promoting capital formation, or making markets fair. He cares about power.

— Ryan Selkis 🥷 (@twobitidiot) August 30, 2022

“[SEC Chair] Gary Gensler does not care about protecting investors, promoting capital formation, or ensuring market fairness. He cares about power,” wrote the founder of Messari.

Grayscale Investments filed the paperwork to convert its digital-gold-backed trust into a spot Bitcoin ETF in October 2021.

On 17 December the SEC delayed a decision on the application, and in February 2022 took this step again. On 30 June the company sued the regulator after the final rejection of its filing.

Earlier Grayscale indicated that the SEC’s willingness to approve a futures-based Bitcoin ETF while denying the spot-based applications may violate the Administrative Procedure Act.

The critique of the regulator was supported by John Deaton, founder of the Deaton Law Firm, representing XRP holders in the SEC v. Ripple case. According to him, the Commission’s suit has resulted in losses for token holders of $15bn.

And $15B was lost because the SEC intentionally chose not limit the allegations against Ripple to specific sales made by Ripple and its executives but instead alleged all XRP including secondary market sales of XRP are unregistered securities. https://t.co/o3GGANtaOM

— John E Deaton (213K Followers Beware Imposters) (@JohnEDeaton1) August 30, 2022

In August, Forbes journalist Roslyn Layton published a piece in which she questioned the SEC’s objective approach to crypto-industry oversight.

“[…] the SEC’s actions on ‘enforcement by fiat’ are a kind of manipulation through arbitrary and capricious decisions and lack of process and rules,” the article says.

According to Layton, the SEC prefers levying fines to regulating.

The Wall Street Journal editorial board accused the head of the agency of a ‘misleading’ approach to approving the spot Bitcoin ETF. обвинила the agency’s leadership in adopting a misleading stance on approving the spot Bitcoin ETF.

Also voicing condemnation of the Commission were billionaire Mark Cuban and US Representative Tom Emmer. According to the latter, Gensler has chosen a tactic of bullying and threats toward the crypto industry.

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