Gemini Crypto Exchange Boss Cameron Winklevoss Criticizes SEC Actions

Gemini founder Cameron and Tyler Wolvoss. (Photo. Doc. Bitcoin Pl)

JAKARTA - The founder of the Gemini crypto exchange, Cameron Winklevoss, criticized the SEC (Securities and Exchange Commission) for their rejection of the Bitcoin ETF (Exchange Traded Fund) product which was considered safer.

Gemini through Cameron and his twin brother Tyler Winklevoss had submitted a Bitcoin ETF proposal ten years ago but was rejected by the SEC. According to Cameron, the SEC's denial has encouraged American crypto investors to venture into riskier products and companies like FTX. He stated that the SEC needs to stop overriding its legal powers and focus on protecting investors.

The SEC argues that the Bitcoin market is vulnerable to illegal activity such as wash trading and lacks mechanisms to prevent mass fraud. However, Cameron highlighted that the SEC needs to consider their negative record and fulfill their mandate to protect investors.

“Today marks 10 years since Tyler and I proposed the first Bitcoin ETF. The SECGov's refusal to approve these products for a decade has been catastrophic for US investors and shows how the SEC is a failed regulator. Here's why: protected...” wrote Cameron Winklevoss via his Twitter account (@cameron) July 2, 2023.

Some crypto investors have been forced to invest in digital assets through regulated and risky products such as the Grayscale Bitcoin Trust (GBTC), which Cameron has criticized as toxic.

In addition, regarding the regulation of crypto assets, there are differences of opinion between the Democrats and Republicans in the United States. The Biden administration tends to view most digital assets as unregulated securities.

While several other politicians including presidential candidate Robert F. Kennedy Jr. consider Bitcoin and crypto assets as an integral part of financial freedom that must be protected. This is expected to be a significant topic of debate in the upcoming US presidential election.

The SEC's recent rejection of Bitcoin ETFs has caused a shake-up in the market. However, the announcement regarding the possible approval of Bitcoin ETFs has helped recover Bitcoin prices from lower levels.

Demand for regulated Bitcoin products, such as ETFs, is growing among institutional investors with the crypto market expected to overtake the precious metals market in the next few years. This shows that well-structured digital assets such as Bitcoin and Ethereum are becoming increasingly indispensable in a volatile global economic environment.