The former head of Internet enforcement at the Securities and Exchange Commission (SEC) has warned the crypto industry that “the regulatory onslaught has just begun.” His warning follows several recent enforcement actions by securities regulators against major crypto companies.
The SEC’s regulatory onslaught is just beginning.”
Former Securities and Exchange Commission (SEC) official John Reed Stark warns of an escalating “regulatory onslaught” on the crypto industry Stark founded the SEC Internet Enforcement Division and served as its chief for 11 years. He also spent 15 years as an SEC enforcement attorney, leading cyber-related projects, investigations, and enforcement actions.
Stark tweeted Thursday that the SEC “hit Blockfi for not registering a crypto lending program, stopped Coinbase from launching a crypto lending program, and just for that arn crypto lending grift hit Gemini / Genesis,” he explained. He warned.
Buckle up: the SEC’s regulatory onslaught has just begun.
Last week, the SEC charged crypto exchange Gemini and crypto lender Genesis “for offering and selling securities to retail investors without registration through the Gemini Earn crypto asset lending program. Last February, regulators took action against cryptocurrency lending platform Blockfi, which filed for bankruptcy in November. In addition, the securities watchdog also threatened to sue Coinbase if the NASDAQ-listed crypto exchange proceeded to launch a lending program in September 2021; Coinbase has since shelved its plans.
Stark is a vocal crypto skeptic and regularly comments on social media about the dangers of investing in cryptocurrencies. He said last November that “in crypto land, the Ponzi shell game continues&and the death spiral may have now begun.” Fail not at your peril crypto investors,” he said, noting that crypto has “FDIC insurance, no SEC examination team, no regulatory oversight, no licensure, and no consumer protections,” he emphasized. He warned that with crypto investments.
You are 100% on your own.
Citing Stark, CNBC Mad Money host Jim Cramer also warned about the SEC “cleaning house” in the crypto industry. He urges investors to get out of crypto now.
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