Messari founder Ryan Selkis criticized SEC Grayscale Investments for refusing to convert its bitcoin trust into an exchange-traded fund (ETF).

Noting that the attackers deprived users of $1 billion last year, Selkis noted that the Commission’s refusal to convert GBTC into a spot bitcoin ETF was a scam that resulted in far more losses – $7 billion.

$1 billion was lost to crypto scams last year.

$7 billion was lost due to SEC scams that disapproved of a spot ETF at the expense of grayscale investors.@GaryGensler It is not concerned with protecting investors, promoting capital formation, or making markets fair. It cares about power.

— Ryan Selkis 🥷 (@twobitidiot) 30 August 2022

“[Председатель SEC] Gary Gensler is not concerned with protecting investors, facilitating capital accumulation, or ensuring fairness in the markets. He cares about power,” the founder of Messari wrote.

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

On December 17, the SEC delayed decision making on the application and took that step again in February 2022. On June 30, the company sued the regulator after its application was ultimately rejected.

Earlier, Grayscale pointed out that the SEC’s willingness to approve futures-based bitcoin ETFs while rejecting orders based on the spot version may violate the Administrative Procedure Act.

The regulator’s criticism was supported by John Deaton, founder of Deaton Law Firm, who represented the interests of XRP holders in the SEC lawsuit against Ripple. According to him, the Commission’s lawsuit resulted in a $15 billion loss for token holders.

And $15 billion was lost because the SEC deliberately chose not to limit claims against Ripple to specific sales by Ripple and its executives, instead claiming that all XRP, including secondary market sales of XRP, are unregistered securities. https://t.co/o3GGANtaOM

— John E Deaton (213K Followers Beware of Scammers) (@JohnEDeaton1) 30 August 2022

In August, Forbes journalist Roslyn Layton published an article in which she questioned the SEC’s objective approach to moderating the crypto industry.

“[…] The Securities and Exchange Commission’s actions on “forced regulation” are a form of manipulation through arbitrary and capricious decisions and the absence of process and rules,” the article states.

According to Layton, the SEC prefers fines rather than regulating.

Recall that the editors of the Wall Street Journal accused the department chair of a “confusing” approach to spot bitcoin ETF adoption.

Billionaire Mark Cuban and US House of Representatives Tom Emmer also condemned the Commission. According to the latter, Gensler chose the tactics of harassment and threats against the crypto industry.

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