Over the past decade, U.S. securities regulators have forced investors to buy “toxic” and “unregulated” crypto products, according to Gemini co-founder Cameron Winklevoss.

The Winklevoss Twins, July 2 slam The U.S. Securities and Exchange Commission (SEC) has repeatedly rejected spot bitcoin exchange-traded funds, noting that it has been 10 years since the twins first filed to get their own ETF approved by the regulator.

“The (SEC’s) ten-year refusal to approve these products has been a complete disaster for U.S. investors and shows that the SEC is a failed regulator.”

Winklevoss argued that without an approved spot bitcoin ETF, U.S. investors are forced to buy “toxic products like the Grayscale Bitcoin Trust (GBTC), which trade at a significant discount to the bitcoin price,” and argued that Charge “astronomical” fees.

Compared to the price of Bitcoin, the NAV of GBTC is currently discounted by 30%, according to According to the latest data in July 2022, the GBTC annual fee is 2%, while the average annual fee is 0.40% study From the financial services company Morningstar.

Winklevoss also believes that this refusal has led U.S. investors to “unlicensed and unregulated” offshore platforms, including FTX, which he called “one of the greatest financial frauds in modern history.” “.

“Perhaps the SEC will reflect on its dismal record and instead of overreaching its statutory powers and attempting to act as a gatekeeper of economic life, it will instead focus on fulfilling its duty to protect investors,” he argued.

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Winklevoss’ comments come as a string of firms have recently filed, updated or amended filings for spot bitcoin ETFs, including BlackRock, Fidelity, WisdomTree, Invesco, Valkryie and ARK Invest.

The SEC reportedly said some spot ETF filings were inadequate and “not clear and comprehensive enough.” The regulator has asked fund managers to resubmit after clarifying the language of their filings.

Meanwhile, Gemini is in the middle of a protracted court settlement with Genesis, a subsidiary of Digital Currency Group (DCG), which also owns GBTC’s management company, Grayscale. The exchange is also in court over the SEC’s allegations.

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