According to Cointelegraph, Grayscale Investments CEO Michael Sonnenshein emphasized in an interview that if the SEC continues to take a one-by-one approach to regulating the cryptocurrency industry, it will have a potential negative impact on the U.S. economy. Sonnenshein said that the SEC could drive crypto companies out of the United States by continuously taking enforcement actions against the industry.
“If every crypto-related issue needs to go to court, it’s suppressing the innovation that’s happening in the country,” he said. Sonnenshein reiterated that the industry needs clear definitions of crypto commodities and crypto securities, as well as clearer regulatory guidelines for stablecoins. He believes this will prevent companies from moving outside the United States.
Sonnenshein remains optimistic about the ongoing efforts of the U.S. Congress to provide regulatory clarity for the industry. “There are a lot of pieces of legislation that are likely to pass in this Congress that could provide the industry with the actual clarity it needs to move forward in a way that embraces crypto,” he said.