Chairman of the U.S. Securities and Exchange Commission (SEC) ), Gary Gensler revealed that regulators will use all available tools to bring crypto platforms into compliance with their rules.
SEC Chairman Gensler on Crypto Regulation
SEC Chairman Gary Gensler has announced that the crypto platform will be banned after securities regulators filed indictments against former Alameda Research CEO Caroline Ellison and former FTX. Executive Gary Wang, who played a role in deceiving equity investors, stressed the importance of compliance. SEC bosses tweeted on Wednesday:
Risks to investors remain until crypto platforms comply with established securities laws. Bringing the industry into compliance using all available tools remains a priority for the SEC.
In an interview with Bloomberg on Thursday, Gensler indicated that the SEC has just launched a crackdown on cryptocurrency companies that are not compliant.
Gensler explained that crypto firms are “shortening the runway” for him to enter and register with the SEC, adding, “This Old West casino is a regulatory compliant company. It’s an intermediary that doesn’t do it,” he emphasized.
The SEC Commissioner also commented on Proof of Reserve (POR) reports that many cryptocurrency exchanges, including Binance, use to prove that customers have sufficient funds for withdrawals. did. Noting that this practice falls short of the disclosures necessary to protect investors, Gensler explained:
Funds under the Securities Act.
Gensler said cryptocurrency companies “adhere to proven custody, segregation of customer funds, and accounting rules” to “provide confidence that the cryptocurrency is really there.” I suggested that we should give it to the customer. The SEC focuses on financial recordkeeping for cryptocurrency companies.
Securities regulators and their chairmen have been heavily criticized by some for their law-enforcement-centric approach to regulating the cryptocurrency industry. Since Gensler and his SEC staff met with his former FTX CEO Sam Bankman-Fried (SBF) several times, they have also been under scrutiny for the collapse of crypto exchange FTX.
Rep. Tom Emer (R-Minnesota) tweeted on Thursday. The lawmaker further wrote:
Conducting behind-the-scenes regulatory transactions with bad actors is not a tool in the SEC’s toolbox.
Rep. Emmer said last month that the impact of FTX was not the failure of cryptocurrencies, but the failure of the SEC and Chairman Gensler. Minnesota legislators have asked Gensler to testify before Congress about the costs of his regulatory failures.
emphasized its importance. He previously said that while most crypto tokens are securities, the crypto space is largely non-compliant. The securities regulator recently released its strategic plan for the next four years, and cryptocurrencies are one of its top priorities. Gensler said in November that the SEC’s enforcement arm remains focused on cryptocurrencies.
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