Using courts for every crypto issue will crush innovation: Grayscale CEO

Grayscale CEO Michael Sonnenshein has emphasized the need for a balanced regulatory approach to cryptocurrency to avoid hampering the innovation in the United States.

News Join us on social networks

Grayscale Investments CEO Michael Sonnenshein has pointed to a potential negative outcome for the US economy if the Securities and Exchange Commission (SEC) continues to take an individual approach to regulating the crypto industry -currency.

During a recent interview with Fox Business, Sonnenshein said that the SEC could drive crypto companies out of the country with constant enforcement action against the industry.

“If every crypto issue has to be taken to court, then as a country we are crushing the innovation that is happening here,” Sonnenshein said.

Grayscale CEO Michael Sonnenshein on Fox Business 'The Claman Countdown'. Source: Fox Business

Sonnenshein reiterated that the industry needs separate definitions for crypto products and crypto securities, as well as clearer regulatory guidelines for stablecoins.

He thinks this will prevent companies from relocating outside the United States. Sonnenshein said:

"Adding more clarity to this would ensure that businesses and people working in crypto don't leave the United States because our regulatory environment is hostile to the asset class, but instead embrace it."< /p>

Similarly, Ripple CEO Brad Garlinghouse echoed similar comments ahead of Ripple's partial victory against the SEC, which was decided on July 13.

June 17, Garlinghouse