SEC Chairman Gary Gensler has doubled down on his commitment to enforcing strict regulatory measures in the cryptocurrency industry, to continue protecting investors. We just don’t know which one of them.
SEC’s focus on regulatory compliance
Gensler’s statements come as pressure builds from members of Congress, including Republican Representatives Tom Emmer and Patrick McHenry, who have been pushing for more clarity on crypto regulations, particularly in relation to crypto airdrops.
The SEC has been heavily policing major crypto platforms such as Coinbase, Kraken, and Binance, engaging in legal disputes, or saying less politely, suing and threatening them to enforce compliance and obedience.
In a CNBC interview, Gensler made it clear that the SEC won’t back down from its regulatory efforts.
He stated that the agency is focused on shielding the public from fraudulent activities in the crypto world, and he repeated that cryptocurrency should operate under the same rules as traditional securities and provide the same protections for investors.
“We’re gonna continue to try to protect the investing public. This is a field that is rife with fraudsters, scammers, and grifters.”
A fraud is a fraud, regardless of the medium
One key aspect of Gensler’s remarks was the growing legal trouble faced by prominent figures in the crypto industry. He pointed to cases like Sam Bankman-Fried, the former CEO of FTX, Changpeng Zhao, the former CEO of Binance, and Terra co-founder Do Kwon, all of whom are dealing with criminal charges or extradition issues.
These high-profile legal cases underscore the SEC’s concern about the industry’s lack of regulatory adherence.
On the other hand, some suggest criminals doesn’t make crypto bad as billions of fines each year for the banking giants doesn’t makes banking industry bad.
Gensler also mentioned that the cryptocurrency industry is no different from other sectors when it comes to the necessity for regulatory oversight.
He explained that even with digital assets stored on accounting ledgers, basic investor protections should still apply.
He didn’t mention that investor protection should comes from the third party company side, not from protocol side.
If you could just establish usable rules, that would be awesome
While Gensler pushes for strict oversight, some lawmakers worry that the SEC’s regulatory actions could hold back innovation in blockchain technology.
Republican lawmakers, in particular, have voiced concerns that too much regulation could damage the decentralized nature of blockchain and restrict growth within the U.S.
They’re probably right. They want a regulatory approach that allows blockchain technology to thrive while still protecting investors.
“The future of the peer-to-peer digital economy cannot be left to the authoritarian whims of GaryGensler.”
