The general financial market is still reacting to the Securities Exchange Commission’s (SEC) decision to reject the Grayscale spot Bitcoin Exchange-Traded Fund (ETF) over market manipulation concerns, with SkyBridge Capital founder Anthony Scaramucci blasting the agency.
Speaking during an interview with CNBC’s Squawk Box show on June 30, Scaramucci noted that the rejection is a “missed opportunity for the U.S. to advance its dominance in the financial sector.”
The investment company founder notes that the U.S. risks lagging behind other regions like Canada and Europe while maintaining that it’s ironic for the SEC to reject the Bitcoin ETF, yet it has not issued any crypto regulations.
Impact on U.S. intellectual capital
According to Scaramucci, the decision by the SEC is a ‘terrible thing for the country’, citing that the regulatory’s agency’s vagueness will negatively impact the U.S. intellectual capital in the future.
“It’s a missed opportunity for the country. We have had the mantle of financial services leadership for a hundred-plus years. The fact that the SEC is moving in this direction where the Europeans and Canadians are allowing for a cash ETF it’s just a huge missed opportunity. The SEC now stands for Stop Economic Creativity,” said Scaramucci.
He further blasted the SEC leadership for enhancing its legal team, but there is no progress in offering crypto regulations.
On June 29, after anticipation, the SEC rejected Grayscale’s application to convert its $13.5 billion Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin ETF despite the company’s extensive efforts.
Grayscale sues SEC
Notably, the approval of a spot Bitcoin ETF was viewed as an opportunity to offer a low-cost and easily accessible way for individuals and institutions to invest in Bitcoin.
Consequently, as predicted, Grayscale sued SEC within hours of denying the application. Grayscale has been preparing for this moment after boosting its legal team with key appointments, including former Obama administration Solicitor General Verrilli Jr., who served between 2011-2016.
In this case, the investment company will likely argue that the SEC has the mandate to allow a spot Bitcoin ETF like other products already trading with reference to the Bitcoin futures ETF.