Messari CEO Calls SEC Ignoring Bitcoin Spot ETF A Fraud

Messari CEO bashes SEC for not approving Bitcoin Spot ETF.

Ryan Selkis, CEO and founder of crypto market intelligence provider Messari, is the latest to reprimand the SEC. The U.S. Securities and Exchange Commission (SEC) has been on the receiving end of criticisms from crypto proponents. Selkis, one of the most vocal crypto enthusiasts, recently lambasted the regulatory body for failing to approve Grayscale’s Bitcoin spot ETF application.

On Tuesday, Ryan Selkis called the SEC’s rejection of Grayscale’s BTC spot ETF application a fraudulent move. Selkis pointed out that Grayscale investors have had losses of $7B due to the SEC’s decision. “$7B has been lost to the SEC’s fraud in failing to approve a spot ETF at the expense of Grayscale investors,” he said.

$1bn was lost to crypto fraud last year.

$7bn has been lost to the SEC’s fraud in failing to approve a spot ETF at the expense of Grayscale investors.@GaryGensler doesnt care about protecting investors, promoting capital formation, or making markets fair. He cares about power.

— Ryan Selkis ? (@twobitidiot) August 30, 2022

Comparing it with the $1B lost to obvious scams in the space in 2021, Selkis highlighted that the SEC’s actions had done more damage to crypto investors than these scams. Speaking further, the American entrepreneur and investor asserted that SEC Chair Gary Gensler does not care about investor protection. 

Selkis also argued that Gensler’s actions are not driven by a desire to promote capital formation or make the markets fair. He mentioned that Gensler instead cares for power. Selkis argues based on recent unfavorable moves from the SEC against crypto entities.

The SEC Vs. Grayscale

In June, the SEC denied Grayscale Investments’ application to convert its Grayscale Bitcoin Trust (GBTC) to a BTC spot ETF. Grayscale made the application in October of last year, but the SEC has since then delayed its approval. After waiting and making required adjustments for months, Grayscale faced a rejection two months back.

According to the SEC, the rejection was due to several reasons, including insufficient answers to queries on market manipulation prevention. In response, Grayscale charged the SEC to court on the same day. The investment firm requested that the U.S. Court of Appeals consider the regulator’s decision for possible review.

The decision by the SEC to reject the Spot ETF application has denied Grayscale’s individual and institutional investors an opportunity to get easy access to direct BTC investments. The GBTC trust only gives clients a chance to make investments backed by BTC derivatives contracts. This is the foundation of Ryan Selkis’ assertion.

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