Just In: Gary Gensler Faces Flak For ‘Misleading’ Statements On Crypto Market

gary gensler crypto market news

Crypto News: In sheer contrast to the market perception, U.S. Securities and Exchange Commission (SEC) chair Gary Gensler reiterated that laws around digital asset activities in the US are clear. He explained the various proposals the regulatory agency brought in to achieve the goal of investor protection. Gensler went on to say that the SEC has the enforcement ‘tool’ to root out non-compliant crypto market players. However, the crypto community came out strongly against him, calling the statements ‘misleading’.

Also Read: More Crypto FUD?: Binance Blocks More Russia Transaction Modes Amid War

Amid all the talk of lack of regulatory clarity in crypto space, the SEC chair feels crypto firms and tokens should come forward “on their own” under compliance. “Crypto intermediaries should structure their businesses to comply with our laws.” This brings the question as to how the many thousands of cryptocurrencies will pass the SEC’s regulatory lens. He adds that the crypto businesses should follow “the same rules that everyone else in the securities markets” did.

‘Crypto Firms Not Lining Up To Register With SEC’

Stating that the crypto firms are not showing interest in registering with the SEC, Gensler said the businesses rely on being non-compliant. In his latest write-up, the Securities and Exchange Commission chair clarified that the only way forward to resolve what seems to be the regulatory deadlock is if crypto firms operate within the existing laws. The companies that came forward to register are non law abiding, he indicated.

“At times, it has felt like some have sought a stamp of approval for noncompliant activity, rather than changing a fundamentally non-compliant business model rife with conflicts.”

Gensler had on several occasions maintained his controversial statements that all other crypto tokens except Bitcoin would be considered securities. In line with this, he reiterated that the SEC wants to ensure investors get protections that they would receive in any other securities market. This argument was met with sharp criticism, criticizing Gensler of pushing away innovation from outside the United States with regulatory clarity. In his latest statement, the SEC chair also mentioned that he finds the talk of ‘lack of clarity around crypto laws’ unconvincing.

Also Read: Hedera Faces Network Issues Amid Growing Fears Of Hack; Is HBAR Price Set To Crash?

Reacting to this, Dave Weisberger, CEO of a crypto firm, called his statements ‘misleading’. He raised doubts over the compatibility of crypto businesses with the process that registers traditional companies. Some others have raised the longstanding view that the SEC should work closely with the crypto players in crafting a new regulatory guidance.

The post Just In: Gary Gensler Faces Flak For ‘Misleading’ Statements On Crypto Market appeared first on CoinGape.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Finixio Crypto: From Online Marketing to Cryptocurrency Scams?

Cryptocurrency scams have been a constant threat to the industry since its inception. These scams not only drain funds from unsuspecting investors but also contribute to the negative perception of cryptocurrency as a whole. One such company that has been experimenting with online users’ psychology is Finixio crypto. In this article, we will delve into

Binance CFTC Lawsuit Has Enough To Affect Major Crypto Downtrend?

Crypto News: The Commodities Futures Trading Commission (CFTC) lawsuit against crypto exchange Binance changed the narrative in the market, but it remains to be seen if the move still has enough legs to affect a major downtrend in cryptocurrency prices. Although the news of the lawsuit led to significant drop in Bitcoin price, it continues

Miners Dumping Bitcoin To Crypto Exchanges, BTC Price Reversal Below $25K Likely

Bitcoin price fell from $28K to $26.5K after the US CFTC sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for violating U.S. crypto trading and derivatives regulations. The crypto market considers this move as a continued regulatory crackdown against crypto. With the crypto market already facing liquidity issues, action against Binance will further

XRP Lawyer: After CFTC, SEC Could Sue Binance Over Securities Offerings

Crypto News: The Commodity Futures Trading Commission’s (CFTC) lawsuit on crypto exchange Binance made waves in the market. But the CFTC’s views on crypto classification is becoming a much bigger debate as US regulators continue enforcement actions on crypto businesses. Meanwhile, the crypto market is perceiving this as a fight between the two regulatory agencies,