SEC Under Fire: Winklevoss Twins Unleash Scathing Critique!

• SEC’s refusal to approve spot Bitcoin ETF criticized by Cameron Winklevoss
• Winklevoss highlights the harm caused to investors by SEC’s negative stance
• SEC’s decisions lead to market voids and offshore operations

Gemini co-founder Cameron Winklevoss recently expressed strong criticism towards the Securities and Exchange Commission (SEC) for its negative stance on spot Bitcoin exchange-traded funds (ETFs). In a tweet published on July 2nd, Winklevoss emphasized the detrimental impact of SEC’s refusal to approve these products over the past decade, highlighting the agency’s failure in this regard.

According to Winklevoss, SEC’s negative stance has prevented investors from confidently investing in the best-performing asset of the past 10 years, Bitcoin. He also implied that the void created in the industry due to SEC’s decisions has been filled by the bankrupt cryptocurrency exchange FTX and the crypto-focused investment firm Grayscale’s GBTC fund. Additionally, Winklevoss pointed out that the offshore relocation of spot Bitcoin activities is a consequence of SEC’s policies.

FTX is often cited as an example of the negative consequences of SEC’s innovation-hindering policies, while the GBTC fund is described by Winklevoss as “toxic.” He drew attention to the high negative premium and excessive transaction fees charged by GBTC. Winklevoss argued that if SEC focused on fulfilling its primary duties of protecting investors instead of engaging in actions that restrict their financial lives, capital formation would be facilitated and positive outcomes would be achieved for American investors.

Recently, SEC rejected several spot Bitcoin ETF applications from asset management companies, including Fidelity and BlackRock, citing insufficiently clear and comprehensive information provided in the applications.